Khóa luận tốt nghiệp: Heritage economy development in Vietnam: current situation and solutions

The role of the heritage economy is shown explicitly in thefact that it contributes to creating jobs and increasing household income, redevelopingthe city center, heritage tourism, real

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GRADUATION THESIS

HERITAGE ECONOMY DEVELOPMENT IN VIETNAM:

CURRENT SITUATION AND SOLUTIONS

Ha Noi, 2023

Current situation and solutions" is an independent research work, completed by myself.The data, references and citations used in this thesis all clearly state the author's originand are recorded in the reference list.

Ha Noi, October 2023

Supervisor’s Approval Student

Ph.D Le Minh Quang Chu Phuong Mai

solutions" is the content that I researched and wrote my graduation thesis after studying

at the Faculty of Political Economy, University of Economics and Business During theprocess of researching and completing the thesis, I received much attention and helpfrom teachers, colleagues, family and friends For the most successful thesis, I wouldlike to send my sincere thanks to:

The Falcuty of Political Economy, University of Economics and Business has

created a very good learning and training environment, providing me with usefulknowledge and skills to help me apply and easily carry out my thesis

Instructor - Dr Le Minh Quang is a passionate teacher who has dedicatedlyguided and helped me throughout the process of researching and implementing the

project

I would also like to sincerely thank the Board of Directors and teachers of theUniversity of Economics and Business for creating the opportunity for me to work at theschool to gain knowledge and practical experience to have useful information for mythesis

Finally, I would like to thank my family and friends for always encouraging me

and creating the best conditions for me to make every effort to complete my research

Sincerely,

Chu Phuong Mai

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CHAPTER 1: OVERVIEW OF RESEARCH SITUATIO!

METHODS

1.1 Overview of research on heritage economy developmeni - 7

1.1.1 Domestic research documents

1.1.2 Foreign research documents

1.1.3 General assessment of the research prOj€CfS - - - 5+ s++cccervrseerrre 121.2 Research methods

1.2.1 Research process

1.2.2 Data collection methodis -5- 55c scseseeeeeesererrerrrrereee TỔ

1.2.3 Data analysis method

CHAPTER 2: THEORETICAL BASIS OF HERITAGE ECONOMY

DEVELOPMENT

2.1 Concepts, characteristics and types of heritage economy -‹ 19

2.1.1 Concepts

2.1.2 Characteristics of heritage economy

2.1.3 Types of heritage economy

2.2.2 The role of heritage economy development

2.3 Interest relationships and market limitations in heritage economic development

31

31

35

2.3.1 Interest relationships in heritage economic development

2.3.2 Market limitations in heritage economic development

36

37

2.4 Content of heritage economy development

2.4.1 Create an environment for heritage economy development

2.4.2 Promulgate mechanisms and policies to support heritage economy

development 38

2.4.3 Ensure harmony of interests in heritage economy development 402.4.4 Conserve heritage in parallel with developing heritage economy 422.5 Criteria for evaluating heritage economy development . -+-5+++ 432.6 Factors affecting heritage economy developimen( - - - +5++x+s+ses++ 462.6.1 Factors belonging to the macro environm€n - - + + c+es++s++ 462.6.2 The factors belong to the local government 492.6.3 Factors belong to heritages 50CHAPTER 3: CURRENT STATUS OF HERITAGE ECONOMY

DEVELOPMENT IN VIETNAM

3.1 Current status of Vietnam's heritage resources scale

3.2 Current status of heritage economy development in Vietnam - 553.3 Current status of the role of local governments in heritage economic

economy 723.4 General assessment of the current status of heritage economy development in

“VIỆHHAH 24/2 2220200002/0000//0139/02091/0/09703091/0100793192001997091930030970330902J

7576

3.4.1 Achievements

3.4.2 Limited and causes

CHAPTER 4: PERSPECTIVES AND SOLUTIONS FOR HERITAGE

ECONOMY DEVELOPMENT 794.1 Perspectives on heritage economy developimeII - - +5 +cc+ccscc++ 794.2 Solutions for heritage economic developiment - c+cececceceec.-.e BOCONCLUSION 83

323390050000 B a.Ặ 85

GDP Gross Domestic Product

GRDP Gross Regional Domestic Product

OCOP One Community One Product

OTOP One Tambon One Product

OVOP One Village One Product

UNESCO | United Nations Educational, Scientific and Cultural OrganizationUSD United States Dollar

VND Viet Nam Dong

Figure 3.1 Product structure in the OCOP program by groups in Vietnam

Figure 3.2 Number of OCOP products by region in Vietnam

Table 3.1 Tangible and Intangible World Heritage in Vietnam

Table 3.2 Distribution of heritage sites across provinces and cities in Vietnam

Table 3.3 Capital source for implementing the OCOP program in VietnamTable 3.4 Subjects participating in the OCOP program in Vietnam

Table 3.5 Direct and Indirect labor in heritage tourism in some provinces

many countries around the world Many countries take advantage of heritage foreconomic development such as England, France, Spain Italy each year attracts over 50

million international visitors to the heritage tourism industry, bringing in revenues of

nearly 170 billion USD (approximately 85% of Vietnam's total GDP in 2016) (Dung, L

et al., 2018) At the continental level, Europe has the Alliance of European Heritage

Conservation Groups, which sets annual "European Heritage Days" in the third week of

September to expand access to heritage for all subjects The European Heritage Days are

a series of participatory cultural events shared by the people of Europe The birth of theheritage economy is one of the efforts to attach heritage to socio-economic developmentpolicies (Nguyen Cong Thanh, 2019)

As a specialized field of economics, heritage economics emerged relativelyrecently (Throsby, 2012) The role of the heritage economy is shown explicitly in thefact that it contributes to creating jobs and increasing household income, redevelopingthe city center, heritage tourism, real estate value, nurturing small businesses (Rypkema,

2015); creating conditions to awaken and promote the potential of a large segment of thepopulation to participate in the country's development; restore and develop traditional

occupations; contribute to the growth of the country's GDP and increase the state budget;economic development and preservation of heritage values (Bui Minh Hao, 2021).Vietnam has a history spanning several thousand years, with 54 ethnic groups livingtogether in the territory, demonstrating the diversity and richness of cultural heritage inthe territory of Vietnam Up to now, Vietnam has more than 40,000 relics and landscapes,

of which more than 3,000 relics are ranked national relics, and more than 7,000 relicsare ranked provincial relics Among the national monuments, there are 105 unique

economy - a new field of economic development based on local cultural resources Many

types of heritage economies have been born and developed, typically including heritagetourism, OCOP production, and products with the symbolic value of heritage (Tran

Huu Son, 2023) The total investment capital to implement the above production

programs is up to billions of dollars (Hoang et al., 2021) In provinces and cities withextensive heritage resources, taking advantage of these resources for economicdevelopment is also increasingly focused on by local governments Discussions andseminars have been organized to discuss this issue, and provincial-level scientific

research projects with billions of dollars in funding related to this issue are being andwill be carried out (Bui Minh Hao, 2021)

Heritage is an excellent resource for economic development Taking advantage ofthis strength to exploit the economic value of heritage is very important However,

currently, many provinces and cities have yet to really do this well Although there is an

immense heritage treasure, the economic value of the heritage obtained is notcommensurate Many problems still need to be solved in the process of researching andimplementing heritage economy development, such as how to both develop the economyand preserve heritage values, exploit and use natural heritage resources reasonably, and

ensure harmony of interests in heritage economy development Therefore, to developthe heritage economy in Vietnam in the coming time, it is necessary to promote the role

of local governments through a system of viewpoints, policies, and measures to create

an environment, support resources for the heritage economy and implement policies toensure harmony of interests between relevant entities in heritage economy development

For the above reasons, I chose "Heritage economy development in Vietnam:Current situation and solutions" as my graduation thesis topic

(2) What is the current status of heritage economy development in Vietnam?

(3) What are the limitations and causes of limitations in the development ofVietnam's heritage economy in recent times?

(4) What solutions are there to overcome limitations and solve problems to

promote heritage economy development in Vietnam in the coming time?

3 Goals and tasks of the research

3.1 Objectives of the study

The thesis was conducted to find out the current status of heritage economy

development trends in Vietnam; At the same time, the thesis proposes some perspectives

and solutions to promote heritage economy development in the coming time

3.2 Research mission

Research tasks of the topic:

(i) Systematize a number of theoretical issues on heritage economy development:

- Clarifying related concepts and economic characteristics of heritage;

- Manifestations of heritage economy development and the role of heritageeconomy development;

- Interest relationships and market limitations in heritage economy development;

- Content, influencing factors, and criteria for evaluating heritage economydevelopment

(ii) Analyze and evaluate the current status of heritage economy development inVietnam:

- Analyze the current status of heritage economy development in some provincesand cities based on the content of heritage economy development;

(iii) Analyze the new context affecting heritage economy development in

Vietnam; offer opinions and propose solutions to develop the heritage economy inVietnam in the coming time

4 Object and scope of the research

4.1 Object of the research

The research object of the project is heritage economy development in Vietnam4.2 Scope of the research

- About time: The thesis researches the current status of heritage economydevelopment in Vietnam from 2012 to 2023

- About space: The thesis researches within the space of provinces and cities with

outstanding heritage resources

- Regarding content: The thesis researches the issue of heritage economy

development approached from the perspective of political economy, which is to ensureharmony between the interests of subjects participating in heritage economydevelopment and limit the defects of the market economy in the process of developingthe heritage economy in Vietnam The interests of the subjects participating in heritageeconomy development are both unified, but at the same time, there may also be conflictsthat need to be resolved Conflicts that arise cannot be resolved if left to be regulated bythe market, so the regulatory role of the State and local authorities is needed From there,

the thesis identifies the important role in managing and promoting heritage economydevelopment that belongs to local governments On that basis, the thesis focuses on

clarifying what local governments need to do to promote heritage economy developmentwhile ensuring harmony of interests of all subjects Along with that, the thesis alsoanalyzes and evaluates the results of heritage economy development in some provinces

5.1 Theoretically

The thesis contributes to generalizing and supplementing some issues related to

the theory of heritage economy development Specifically, the thesis has introduced the

concept of heritage economy development, analyzed the manifestations of heritageeconomy development and the role of heritage economic development in the economy

In particular, the thesis clarifies the relationship of interests between the parties, thelimitations of the market in heritage economy development and points out the necessity

of the role of local governments in heritage economy development At the same time,the thesis determines the content of heritage economy development, and presentsevaluation criteria and factors affecting heritage economy development

5.2 In terms of practice

Based on the theoretical framework built on heritage economy development along

with secondary data collected, the thesis analyzes and evaluates the current status ofheritage economy development in Vietnam in the period 2012 - 2023 At the same time,the thesis points out the issues that need to be resolved in heritage economy development

On that basis, the thesis offers opinions and proposes solutions to promote heritageeconomy development in Vietnam in the coming time

The research results of the thesis provide some scientific evidence to help localgovernments of provinces and cities in orienting and making policies to promote heritage

economy development in the area At the same time, the thesis is also a reference forstudying and scientific research at universities on heritage economy development

6 Structure of the topic

Chapter 1: Overview of research situation and research methods

Chapter 2: Theoretical basis of heritage economy development

1.1.1 Domestic research documents

Ha Huu Nga (2017) has an article, "Heritage economics" The author introducesthe concept of heritage economics, valuing the benefits of heritage economics, awareness

of the costs of heritage, and integrating cost-benefit analysis of heritage with making The author pointed out that a solution considered in the field of environmentaleconomics is benefit transfer, whereby the values of a non-market good are "transferred"

decision-to another type of good with the same attributes count Environmental economicsconsultants attribute the limited scope for this technique in current heritage-related

decision-making to the lack of existing heritage valuation studies This shows the need

to apply more non-market valuation techniques to heritage sites

Pham Quynh Phuong (2022) has a research article, "Heritage economics: culturalcapital, heritage valuation and challenges" The author addresses three issues: first is

“heritage economics, cultural capital and natural capital of heritage”; second is “amount

of cultural heritage: value and measurement”; Finally, "heritage valuation: the challengebetween conservation and development" According to the author, the trend ofintegrating heritage conservation into socio-economic development strategies and usingheritage conservation is receiving increasing attention The author pointed out the currentissues raised in the field of heritage economics are the exploration of the interaction

between economic and cultural values in the theory and practice of heritage assessment

This requires economic analysis of heritage conservation projects and more information

on the economic value of cultural heritage

Bui Minh Hao (2021) wrote the article "Awareness of heritage economy and the

development of heritage economy in Nghe An today", providing research results on theeconomics of heritage and heritage economy The author has relied on the cultural capital

economic development in Nghe An, along with some viewpoints and proposals for

heritage economic development According to the author, cultural capital is thefoundation for heritage economy development, and must take the host community as thecenter of development, ensuring harmony between heritage economic development and

heritage value preservation, harmonizing interests among relevant parties

Tran Huu Son (2023) in the article "Vietnamese cultural outline in 1943 with theissue of building a heritage economy" presented the formation process of the heritageeconomy, the characteristics of the heritage economy and introduced propose solutions

for developing the heritage economy in Vietnam in the current context The authorpointed out three cultural principles in the 1943 Cultural Outline that have created strong

developments in the current heritage economy, which are 1- Nationalization, Massification, 3- Science chemistry In the author's opinion, the heritage economy must

2-define sustainable development as a long-term, thorough direction, and must be based

on four pillars: culture - environment - society - economy

Nguyen Cong Thanh (2019) has a research article titled "Estimating the economicvalue of cultural heritage in the process of sustainable urban development" The authorhas pointed out the framework for analyzing the economic value of heritage based oneconomic theories Accordingly, the economic value of heritage is understood as the

monetary value that reflects the value forms of cultural heritage, including aesthetic

value, symbolic value, spiritual value, social value, historical value, unique value,

scientific value; divided into two groups: use value and non-use value Methods forestimating the economic value of heritage include Revealed Preference Methods and

Stated Preference Methods Summarizing the economic value of heritage, Wright andEppink (2016) show that the average economic value of | cultural heritage site is 29.7

Sanctuary Heritage to be 5 million USD, and the highest average WTP per person is 8.78

USD for international tourists and the lowest is 2.17 USD for locals

Bui Dai Dung (2021), in the research "Amount of tangible cultural heritage value,theory and practical research in Hoi An ancient town", presented and thoroughlyexplained the methods and terms, calculation models as well as specific formulas forevaluating tangible heritage, applied in tourism value From that information, the authoraffirmed that to evaluate a heritage, researchers needed to apply knowledge andassessment tools from multiple fields: Tourism, Urban Management, Mathematics

Studies, Architecture, Economics, Environment, Culture

Dang Van Bai, Nguyen Thi Thu Mai (2021) conducted the research "The

preservation of cultural heritage associated with tourism development under theperspective of heritage economics", affirming that heritage is a strategic resource andresource for tourism development The authors have pointed out that the indirecteconomic value of cultural heritage in tourism development is: (1) Importantcontribution to deciding the tourism market; (2) Create a key tourism resource fortourism development; (3) Role in deciding appropriate tourism services; (4) Core to formspecific and different tourism products; (5) Create and determine the brand and image ofthe homeland in the hearts of tourists; (6) Affirming and honoring Vietnamese cultural

identity through tourism; (7) Plays a decisive role in the quality of tourism culture; (8)

Identify key destinations, tours, and tourist routes by connecting cultural heritage; (9)

The quality of cultural heritage value determines the main idea in tourism developmentplanning The authors also discussed and made some proposals for Thanh Hoa province

from the perspective of heritage economics to develop tourism and cultural economy

Phan Huy Xu, Vo Van Thanh (2020) with the article "HERITAGES

-RESOURCES FOR DEVELOPING VIETNAM TOURISM" published in the scientific

magazine Van Lang University, write about the definition, potential, current status aswell as some main solutions in order to bring the heritage resources to develop quality

and sustainable tourism The authors have pointed out that heritage is not only a spiritualand emotional resource but also a material and economic resource The authors haveproposed a number of solutions to develop heritage tourism: 1) Seriously implement ourcountry's Heritage Law and Tourism Law; 2) Harmoniously combine heritageconservation and promotion with economic development and tourism developmentactivities; 3) Promoting the active role of the community in building socialization ofheritage tourism, cultural tourism and community tourism activities; 4) It is necessary to

have cooperation between investors, scientists, tourism service companies and localcommunities to have strategies to preserve and promote heritage and create specificity

and quality tourism products; 5) Apply information technology to proactively andcreatively manage, promote and stimulate demand for heritage tourism

1.1.2 Foreign research documents

Tiizin Baycan, Luigi Fusco Girard (2011) conducted the study HERITAGE INSOCIO-ECONOMIC DEVELOPMENT: DIRECT AND INDIRECT IMPACTS aims toinvestigate the role of cultural heritage in the new economy While addressing thetourism and construction sectors, cultural and creative industries as well as real estate

development and urban regeneration, the authors assessed direct and indirect impacts ofheritage on socio-economic development The authors affirmed that heritage is

increasingly becoming a driving force for economic development: The possibility to

generate income from cultural assets creates employment, reduces poverty, stimulatesenterprise development, fosters private investment and generates resources for

environmental and cultural conservation

Hilal Yildirir Keser (2016) had a research on “Culture Economy for Economic

Development: Assesments on Cultural Heritage in Turkey”, discussed cultural

economics and its relationship to economic development The author gave examples oftangible and intangible cultural products; Specific data on the value of personal, cultural

and entertainment services 2005-2015; annual value of creative goods and exports

2003-2012 According to the author, The cultural heritage that Turkey owns, while mainlyensuring an increase in tourism activities, also leads to the production of creative/culturalproducts and services, and even to the export of these goods Meanwhile, the increase ineconomic activities also improves the employment rate, the welfare of the people living

in places where natural and cultural heritage exists is enriched, while at the same timeincreasing national income due to economic activities

Tudorache Petronela (2016) conducted the research “The Importance of theIntangible Cultural Heritage in the Economy” The author considered two important

factors, namely: money spent by tourists on tourism segment art, culture and heritage,

and money spent by tourists on total attractions of tourism for six years 2009-2014, in 5countries: Greece, Spain, Austria, Portugal, and Slovenia Research results show that

money spent by tourists on tourism segment art, culture and heritage in Austria takesmore than 40% of money spent by tourists on total attractions of tourism; in Greece is 8-15%, Spain 29-31%, Portugal 12-13%, Slovenia is more than 4% The author alsoinsisted that segment art, culture and heritage have a great influence on quite a country's

model will be based on the integration of three strategic axes in the value chain structure:(i) the radical improvement of natural and human resource productivity, (ii) biomimicry

in the design of production processes and flow of materials, (iii) a fundamental shift fromthe selling of goods to the provision of services in the customer-producer relationship

Guangyu Fei et al (2023) conducted the study “The conservation and tourismdevelopment of World Natural Heritage sites: The current situation and future prospects

of research”, performed a systematic literature review based on 179 related studiesretrieved from the Web of Science and Google Scholar databases The authors built asystematic literature review framework to implement the review process, focusing on theresearch question of the conservation and tourism development of World NaturalHeritage sites They conducted quantitative research to analyze the annual numbers,

content and continents of the published literature; then classifying and summarizing themain progress and achievements from theoretical research, technical methods, model

construction, monitoring and evaluating, and application demonstration The authorsalso proposed eight vital scientific issues to be solved and several directions for future

research in view of the current research situation of the conservation and tourism

development of World Natural Heritage sites

1.1.3 General assessment of the research projects

1.1.3.1 Key research findings

Works, publications, and articles published at home and abroad have solved a

number of theoretical and practical issues of heritage economy development.Specifically:

- Research has clarified the contribution of heritage in the development process

of countries and Vietnam Whether a developed or developing country, the heritage

economy is increasingly of special importance in each country's economy, demonstrated

through the following aspects: its role in income diversification and reduction of poverty;

role in improving rural livelihoods as the agricultural sector is expected to shrink; role

in risk management and stabilizing income streams;

- Research has systematized the characteristics and types of heritage economies

in several countries and Vietnam Types of heritage economy include: heritage tourism,

OCOP production, traditional craft villages, and products carrying the symbolic value ofheritage

- Research has developed content and policies for heritage economy development

From theoretical and practical studies, there have been recommendations, proposed

directions and solutions for heritage economy development First and foremost, it isnecessary to create an enabling environment to diversify the dynamism of the heritage

techniques both quantitative and qualitative

1.1.3.2 Gaps and research directions of the topic

As presented above, the published studies mentioned are quite abundant anddiverse in aspects of heritage economic development However, during the consultation

process to write this thesis, I realized that there are still the following research gaps:

First, the contribution of the heritage economy has been analyzed and clarified bythe authors in both qualitative and quantitative terms However, there has been no

research to clarify the role of heritage economic development in local socio-economicdevelopment.

Second, which subjects are involved in heritage economic development, therelationship of interests between subjects and the limitations of the market in heritage

economic development has not been clarified by previous studies

Third, the roles of the Central State and local governments in promoting heritageeconomic development are highlighted by the authors However, what the Central Stateand local governments do and how to develop the heritage economy has not beenclarified by many authors

Fourth, the development status of various types of heritage economy has not beenpointed out by previous studies

Therefore, related to the issue of heritage economic development, there are stillsome contents that the thesis author wishes to continue to research and clarify:

Firstly, clarify the role of heritage economic development in local socio-economicdevelopment in provinces and cities in Vietnam

Second, clarify the relationship of interests and limitations of the market inheritage economic development and point out the necessity of the role of local authorities

in heritage economic development

Third, clarify what local governments need to do and how to develop the heritage

economy.

Fourth, clearly analyze the current status of development of various types of

heritage economies, and at the same time provide perspectives and solutions to promote

heritage economic development in Vietnam in the coming time

1.2 Research methods

1.2.1 Research process

To achieve the research goal and answer the research questions, the thesis hasimplemented the following research process:

Research gaps

Completing the theoretical framework for heritage economy development:

- Clarifying the concept and characteristics of heritage economy;

- The need to develop heritage economy in the current economy

- Content, influencing factors, criteria for evaluating heritage economy

development

Secondarydata

Data collection

Analyze and evaluate the current Draw out the issues that need to bestatus of heritage economy resolved in heritage economydevelopment in Vietnam development in Vietnam

Proposing perspectives and solutions to develop heritage economy in Vietnam

Figure 1.1 Reseach processStep 1: Review the literature to find research gaps

Step 2: Based on document review as well as consultation with experts, the thesiscompletes the theoretical framework on heritage economy development

Step 3: Collect information to assess the current status of heritage economicdevelopment in provinces of Vietnam The data used in the thesis are collected from

secondary data sources

Step 4: Analyze and evaluate the current status of heritage economy development

in Vietnam; Draw out the issues that need to be resolved in heritage economydevelopment in Vietnam

Step 5: Propose perspectives and solutions to develop heritage economy in

Vietnam

1.2.2 Data collection methods

The thesis uses secondary data sources The collection of this data is carried out

as follows:

The thesis uses desk research method, collecting secondary data through theinheritance method, synthesizing previous research documents including the following

documents:

(i) Published studies by organizations, research groups, and individuals related to

heritage and heritage economy development, including: the current status of heritage

resources; the role of heritage economy development; factors affecting heritage economydevelopment; content, directions and solutions for heritage economy development

(ii) Reports of state management agencies to serve the assessment of the currentstatus of heritage economic development of provinces and cities in Vietnam: Report onthe socio-economic development of provinces and cities city in the period 2012-2023;

Documents of Party Congresses of provinces and cities 2012-2023; Provincial statistical

(iv) State legal documents: Cultural Heritage Law 2013, Decision No, TTg dated May 07, 2018 on approving “One commune one product” program in 2018 —

490/QD-2020 period;

These documents are fully cited in the Reference List

1.2.3 Data analysis method

The thesis researches the development of the heritage economy in Vietnam,approached from the perspective of majoring in Political Economics Therefore, thethesis takes the perspective of dialectical materialism and historical materialism as themethodology

In the process of heritage economic development, heritage economic componentsare affected by natural, economic, cultural-social and environmental factors The above

factors have the impact of promoting or inhibiting the heritage economy in general andheritage economic development in particular Therefore, those relationships must be

considered, analyzed and evaluated on the basis of the dialectical materialist perspective

The formation and development of the heritage economy goes through each

period, with different types of business in which the historical materialist method is

applied to study the relationships and interactions between actors in the heritageeconomy; especially the context of developing a socialist-oriented market economy andindustrialization and modernization associated with the development of a knowledgeeconomy in Vietnam today

On that basis, the thesis uses a combination of the following research methods:

- Scientific abstraction method: The thesis temporarily puts aside the secondary,

non-essential aspects to delve deeper into the main, essential aspects, from which to drawconclusions about the theory and practice of developing heritage economy in Vietnam

- Analysis - synthesis method: first of all, the thesis author will use this method

when reviewing the research situation related to the topic, specifically when analyzingand synthesizing the results obtained from the research as well as the issues raised

continue to be researched and clarified Second, the thesis author will use this methodwhen analyzing heritage resource conditions affecting heritage economic development.

Third, this method is used when analyzing and evaluating the current status of heritageeconomic development in provinces and cities 2012-2023 Finally, this method is also

used by the thesis author when analyzing the conditions for implementing solutions todevelop the heritage economy in Vietnam

- Logical method combined with history: The thesis analyzes the theory and

current situation of heritage economic development in Vietnam according to thehistorical process; From there, analyze and evaluate the current situation and proposesolutions to promote the heritage economy in Vietnam in the coming time

CHAPTER 2: THEORETICAL BASIS OF HERITAGE ECONOMY

DEVELOPMENT

2.1 Concepts, characteristics and types of heritage economy

2.1.1 Concepts

2.1.1.1 Concept of heritage

The 2013 Cutural Heritage Law stated concepts related to heritage including:

%1 Intangible cultural heritage is a spiritual product associated with a community

or individual, objects and related cultural spaces, with historical, cultural and scientificvalue, expressing the community's identity Copper, constantly recreated and passeddown from generation to generation by word of mouth, craft transmission, performanceand other forms

2 Tangible cultural heritage is material products with historical, cultural, andscientific value, including historical-cultural relics, scenic spots, relics, antiques, and

national treasures

3 Historical-cultural relics are construction works, locations and relics,antiquities, and national treasures belonging to those works and locations that have

historical, cultural, and scientific value

4 Scenic landscapes are natural landscapes or places that combine naturallandscapes with architectural works of historical, aesthetic, and scientific value

5 Relics are objects that have been handed down and have historical, cultural andscientific value

6 Antiquities are objects that have been handed down, have typical historical,cultural, and scientific value, and are one hundred years old or more

7 National treasures are artifacts that have been handed down, have special value,are rare, and represent the country in terms of history, culture, and science

8 Replicas of relics, antiques, and national treasures are products made identical

to the original in shape, size, material, color, decoration, and other characteristics

16 Museum is a cultural institution with the function of collecting, preserving,researching, displaying and introducing cultural heritage and material evidence of

nature, people and the human living environment, with the aim of serving the public's

needs for research, study, sightseeing and cultural enjoyment.”

According to the Convention Concerning the Protection of the World Cultural andNatural Heritage of UNESCO, meeting in Paris from October 17 to November 21, 1972,17th session, there are regulations on Cultural Heritage in Article 1 and Natural Heritage

in Article 2

Article 1: Cultural heritage is:

“Monuments: architectural works, works of monumental sculpture and painting,elements or structures of an archaeological nature, inscriptions, cave dwellings and

combinations of features, which are of outstanding universal value from the point of view

of history, art or science;

Groups of buildings: groups of separate or connected buildings which, because

of their architecture, their homogeneity or their place in the landscape, are of

outstanding universal value from the point of view of history, art or science;

Sites: works of man or the combined works of nature and man, and areasincluding archaeological sites which are of outstanding universal value from thehistorical, aesthetic, ethnological or anthropological point of view ”

Article 2: Natural heritage is:

“Natural features consisting of physical and biological formations or groups ofsuch formations, which are of outstanding universal value from the aesthetic or scientific

point of view;

Geological and physiographical formations and precisely delineated areas whichconstitute the habitat of threatened species of animals and plants of outstandinguniversal value from the point of view of science or conservation;

Natural sites or precisely delineated natural areas of outstanding universal value

Jrom the point of view of science, conservation or natural beauty.”

According to Dang Van Bai: “Heritage is a product of human creativity asconvincing evidence of the creative capacity of people and the entire nation Only

creative products that have been handed down - selected - integrated - "distilled" overmany generations, containing profound human values (history, culture, science,aesthetics ) can be recognized and honor as cultural heritage In essence, culturalheritage is integrating a system of values, not just single, isolated values.”

The EU 2020 Strategy views heritage today: “Heritage is considered a complexconcept, continuously evolving over time and combining not only historical, cultural,aesthetic, symbolic dimensions, spiritual but also economic, social and political” [4,

pp.16-17] Thus, there must be an expanded view of heritage, such as the EU 2020Strategy to cover all heritage at the national or continental level

2.1.1.2 Concept of heritage economy

Heritage economy is a particular type of economy that develops based on theeconomic values of cultural heritage and does not always follow the market but is a non-market economic sector that is understood in a relative sense in terms of valuation.Heritage economy is a type of economy that develops with cultural capital (Bui MinhHao, 2021)

According to Tran Huu Son (2023), heritage economy is based on the value ofheritage Therefore, to understand the definition of heritage economy, we need to

determine two factors: what is economics and what is heritage Economy is the sum of

the interactive relationships of people and society directly related to the production,exchange, distribution, and consumption of goods and services Cultural heritage is

"spiritual and material products with historical, cultural and scientific value, passed

down from generation to generation" Thus, heritage economy is a type of economybased on the value of cultural heritage

Conclusion from the above perspectives, heritage economy is a type of economythat develops based on the values of heritage, existing in many different business forms.

Heritage economy utilizes and exploits the economic values of heritage for development,bringing in revenue from business activities based on that exploitation

2.1.1.3 Concept of heritage economy development

Development is a philosophical category that indicates the nature of changestaking place in the world Development is an attribute of matter All things andphenomena of reality do not exist in different states from appearance to death the origin

of development is the unity and struggle between opposites

According to Ho Van Vinh (2003), development is a process of change, it requiresperfection in areas where these factors affect the quality of life That means it meets

human needs at a high level in all areas, both in physical and mental life, in botheconomic development and social development in the direction of human civilization

From the concept of heritage economy and the concept of development mentionedabove, it can be generalized that the concept of heritage economy development is “the

process by which the government creates the environment, supports resources,

implements policies and conserve heritage in parallel with developing economy aims tocreate progress in all aspects of the heritage economy, thereby contributing to socio-economic development”

2.1.2 Characteristics of heritage economy

2.1.2.1 Heritage economy has many different types of values

The economic value of heritage has two common types of value: use value and

non-use value Use value includes three sub-branches: direct use value, indirect use valueand choice value; Non-use value includes residual value and existence value According

to Nguyen Cong Thanh (2019), "Use value is the benefit (utility) obtained from the act

of enjoying heritage values (aesthetic, symbolic, historical, ) Use value can be directuse value (for example, traveling for entertainment at a cultural heritage; studying and

researching at a heritage; or indirect use value (such as doing business serving tourists

to the heritage area; producing products bearing the typical image of the heritage).Choice value is also considered use value, reflecting the needs of those who wish to

preserve heritage to serve the enjoyment of direct and indirect use values of those people

in the future” According to him, "Non-use value reflects the needs of people who,although not enjoying the values of heritage at present or in the future, still want to

preserve cultural heritage." Non-use value includes residual value and existence value

Passive value reflects the satisfaction of knowing that future generations can enjoy thevalues of cultural heritage Survival value involves the satisfaction of knowing thatheritage continues to exist to ensure the value of the entire historical and culturalsystem.”

In practice, non-use value often brings economic benefits many times greater thanuse value A brocade bag made by the Mong people in Sapa is only worth 15,000 to

20,000 VND, but when the Mong people embroider it by hand in a specific craft village,the value has doubled from 50,000 to several hundred thousand VND

Similarly, OCOP items with additional cultural value (symbolism, aesthetics,

historical value, crystallization of folk knowledge ) can increase several dozen timescompared to the use value Therefore, in heritage economics, both use value and non-usevalue must be respected

2.1.2.2 The roles of the parties involved in the heritage economy are very close

Any product of the heritage economy requires the contribution of effort,

coordination of management and production If a tourism product "terraced fields" of

Mu Cang Chai, Yen Bai province wants to become a commodity that many tourists come

to visit and admire, it must have a combination of management, orientation, and planningfrom the local government (Tran Huu Son, 2023) At the same time, the terraced field

farming process crystallizes the folk knowledge of the Mong community that has beenpassed down through many generations On the other hand, there is the participation of

businesses bringing tourists to Mu Cang Chai to visit, and at the same time, there is alsoconsultation and research from scientists to enrich the value of the product; in addition,

"terraced field" products are also promoted on the mass media system, social networks

An OCOP product of any traditional commune also has the participation of many

parties Therefore, it is necessary to build a harmonious relationship of interests inheritage economic development

2.1.2.3 Heritage economy is prone to copyright infringement of intellectual property

rights

Heritage is the achievement and value of a community, a locality, a country or allhumanity That value has been crystallized over many generations The higher thehistoricity, the more valuable the heritage However, in practice, the ownership of value

is constantly violated That heritage is invested, preserved, and restored by the State, but

in the end, it becomes the State's heritage, not the heritage of the family or community

In the intangible realm, this phenomenon becomes common In many places, the villagegovernment even collects entrance fees from tourists In many cases, in tourist and

heritage areas belonging to the local community, businesses invest in some products and

sell tickets, while people only benefit very little Typically, in the Cat Cat tourist village

of the Mong people in Sapa town, each year the business collects tens of billions of dongbut only spends a few hundred million on the people in the village, while the landscape

of the Mong villages and the crafts of Mong people, cultural activities of Mong people

in the village (Tran Huu Son, 2023) They are the owners of the tourist destination but

become employees subject to exploitation by the business This phenomenon is even

more common in OCOP products Every item that becomes a commodity exchanged on

the market crystallizes the quintessence of the entire community and nation, calledcultural capital, but when a business creates a brand and mass produces it for sale on the

market, the community loses ownership of inheritance

2.1.3 Types of heritage economy

Heritage economy is a new economic sector, in this economic sector, there are

many different types, such as heritage tourism, OCOP agricultural products, and culturalindustries that "follow" symbols and values of heritage, traditional cuisine, traditional

handicrafts Types of heritage economy all have the common characteristic oforiginating from heritage, being economic types based on the value of heritage

2.1.3.1 Heritage tourism

Heritage tourism involves visiting places rich in heritage (both tangible and

intangible) Heritage tourism also often relies on the created, cultivated, and existingcultural heritage elements Thus, it can be briefly defined: Heritage tourism is a type oftourism developed based on exploiting cultural heritage values, contributing to

preserving and promoting traditional cultural values The main types of heritage tourism

in Vietnam are as follows:

- Spiritual tourism (religious tourism) is a popular type of heritage tourism thatattracts a large number of tourists Spiritual tourism is essentially a type of cultural

tourism, taking spiritual cultural elements to satisfy people's spiritual needs Thus,

spiritual tourism is a type of tourism based on trust to meet people's needs for sightseeingand learning through rituals, meeting the aspirations of individuals and the community

- Origin tourism is a type of heritage tourism that meets the needs of learning andeducating about the historical traditions of building and defending the country These are

return trips to the Viet Bac base, the Southeast base, or other types of tourism "visitingold battlefields" or nostalgic tourism about old battlefields that are popular and thriving

in recent years

- Cultural experience tourism: Currently, life is changing drastically, manydeveloped countries have passed the industrial period, moving to the post-industrial.Developing countries have also passed the agricultural economic stage and moved to anindustrial economy Therefore, the need to explore agricultural civilization and industrial

civilization is becoming a need of young people and contemporary residents.International tourists want to go to developing countries to experience agricultural

culture Urban tourists also want to return to the countryside to explore farmingtechniques and indigenous knowledge Therefore, the trend of experiential tourism is

becoming a significant trend that governs tourism activities Cultivation methods inmountainous areas such as terraced farming, "poking holes for seeds", handicrafts such

as the silver carving of the Mong and Dao people, brocade weaving of the Tay, Thai,Muong, Pottery making of the Cham people, folk knowledge in dealing with the forest

of the Ha Nhi people, are new tourism trends

- Heritage tourism also includes visits to museums, ancient relics, archaeologicalexcavation sites

Thus, heritage tourism includes many different types but are all related to tangiblecultural heritage and intangible cultural heritage Heritage tourism not only has the

function of discovering and improving knowledge but also educating tourists on thetraditions of the homeland and country This function plays a critical role in forming

patriotism and respect for the traditions of our ancestors

2.1.3.2 OCOP production

According to the Ministry of Agriculture and Rural Development, the "OneVillage One Product - OVOP" movement was initiated in Oita, Japan in 1979, toencourage each village to choose and develop a special product for socio-economic

development in rural areas in the direction of endogenous development and valueaddition, focusing on available local resources as a driving force for economic

development (land, resources, geographical conditions, technology, pride, creativity,culture)

The OVOP movement has spread and been implemented in over 40 countries in

Asia, Africa, America and has made many positive contributions to the socio-economicdevelopment of the rural area of countries

Vietnam is implementing a program for each commune and ward to have aproduct called OCOP This is the abbreviation of the phrase "One Commune One

Product" The focus of the OCOP program is to develop agricultural and non-agriculturalproducts with advantages in each locality along the value chain by private economic

sectors (enterprises, production households) and collective economic implementation.These products are all traditional products crystallized from the cultural capital of thecommunity and people in the regions Over thousands of years of history, communities

in different regions have relied on natural conditions to create folk knowledge

(indigenous knowledge, ethnic knowledge) This knowledge is cultural heritage selectedand transmitted to many generations Therefore, all products contain the value ofintangible cultural heritage Thanks to this heritage and the cultural capital of the

community, OCOP products have become specialties and even become a developmentresource in rural villages

Thus, OCOP products crystallize the essence of community heritage The OCOPproduct production process is also the heritage economic production process, the OCOPproduction program is a heritage economic program

2.1.3.3 Products that carry the symbolic value of monuments and heritage

An outstanding feature of heritage and relics is their highly symbolic nature (BuiMinh Hao, 2021) Monuments in Hoi An and Hanoi (for example: Hoan Kiem Lake,Temple of Literature, Imperial Citadel ) have all become symbols appearing in the

media and in several products such as video games and other souvenir products (shirts,hats, bags, pens, notebooks ) This is a characteristic of the path to promote heritage

value in goods The more the heritage symbolism is promoted and the more famous its

value it contains, the more valuable that symbol becomes However, there is no

phenomenon of selling symbols like normal goods, but symbols must be crystallized inother types of goods to increase profits A hat with the word "Hoi An" or objects with thelogo of the Temple of Literature - Quoc Tu Giam are worth many times more than the

actual value Therefore, tourist attractions, experience places and enjoy intangibleheritage values all have stalls selling symbolic products of the monument Cultural relics

and intangible cultural heritage have created a new production industry - the production

of souvenirs and symbolic gifts of heritage The more famous the monument, the greater

the economic value of the iconic products

Besides the main types of heritage economy presented above, there are manytypes of heritage economic products, such as handicrafts, food products, and cuisineassociated with famous intangible heritage in the country (for example, Vietnamese pho,Vietnamese rice paper, Phu Quoc fish sauce, Thai Nguyen tea ) The products havedifferent origins, but all have one thing in common: they have heritage value Thanks toheritage, these products have become famous items with high economic value

2.2 Manifestations of heritage economy development and the role of heritage

economy development in Vietnam

2.2.1 Manifestations of heritage economy development

From the concept of heritage economy development mentioned above, it ispossible to identify the manifestations of heritage economic development, or in otherwords the results of the government's process of creating the environment, supportingresources and ensuring harmony of benefits for the heritage economy is:

First, the heritage economy grows in scale

Heritage economic development in terms of scale is reflected in the increase inthe number of heritage sites protected, restored, exploited and used for socio-economic

development purposes This expression is also shown in the increase in the number ofemployees, revenue and products in various types of heritage economies

Second, the heritage economy develops in quality

Developing the heritage economy in terms of quality is reflected in the increased

level of management, business organization level, labor level and the level of application

of science and technology in the heritage economy, thereby enabling increase economic

efficiency, creating jobs, increasing income and contribute to hunger eradication andpoverty reduction in the area.

Third, the heritage economy has progressed in structure and diversity of business

types

Heritage economic development is manifested in structural progress and diversity

of business types, reflected in increasing participation in various fields and industriesand changes in distribution by each area, each field of the heritage economy Theheritage economic structure is gradually shifting towards diversifying business types onthe basis of promoting and exploiting the advantages of each locality

2.2.2 The role of heritage economy development

Firstly, heritage economy development contributes to creating more jobs for localresidents

The heritage economy plays an important role in creating more jobs for local

people, especially when the unemployment rate in urban areas is still high and rural

residents have a lot of leisure time Heritage economy activities will attract a largenumber of unemployed workers; moreover, it will also utilize the number of over- and

under-age workers in appropriate stages The heritage economy has the ability to attract

a large number of local workers because of the basic characteristics of the heritageeconomy mentioned above, such as many values, close roles of participating parties,many professions, many types of business, with sustainability and community culture.According to Master Nguyen Phuc Luu, National Economics University, the recognition

of the Hue Monuments Complex as a World Cultural Heritage has created over 1.2

million direct jobs and 3.6 million indirect jobs

Secondly, heritage economic development creates conditions for exploiting

available local resources

In addition to mobilizing domestic and foreign labor resources in the locality, the

heritage economy also takes advantage of the heritage's available resources to create

material values The heritage economy leads to the development of many other localindustries and services Because heritage economic activities are increasingly expanding,

credit, banking, accounting services also have more conditions to develop Heritageeconomic development also makes an essential contribution to restoring and developing

traditional local occupations through the "hereditary" method of vocational training,passing on production experience and skills, management experience that has beenaccumulated over many generations in each family and lineage

Thirdly, the heritage economy contributes to preserving traditional culturalvalues and developing local tourism

The development of the heritage economy always goes hand in hand with thepreservation of traditional culture and the development of local craft villages The

products of craft villages, especially traditional craft villages, not only have use valueand commercial value but also have very high cultural value The products of craft

villages, especially handicrafts and traditional handicrafts, have created the distinctcultural identity of each region within the country These products go hand in hand with

many new types of tourism today such as craft village tourism, eco-tourism, home

tourism, cultural discovery tourism , thereby contributing to promoting local tourismdevelopment

Fourth, heritage economic development contributes significantly to the growth ofthe country's GDP and increases the state budget

The recent economic development of heritage has awakened the country's

potential for socio-economic development That potential source is cultural capital,

experience, the ability to exploit heritage values, labor, natural resources and other

resources Thanks to exploiting and making good use of these potential sources in the

development process, the heritage economy has created a large amount of value andproducts for society, while increasing workers' income and creating a driving force topromote the development of production processes, contributing to economic growth The

heritage economy in recent times has contributed significantly to the country's GDPgrowth and increased state budget.

Fifth, heritage economic development contributes to promoting economicrestructuring towards industrialization and modernization

Economic restructuring is a crucial content to successfully implement the process

of industrialization and modernization of the country Developing the heritage economy

will contribute to increasing the proportion of industry, handicrafts and services, while

the proportion of agriculture decreases In addition, developing the heritage economy isthe main way to transform the rural economic structure in the direction of shifting fromlow-productivity, low-income agricultural labor to high productive and qualityoccupational labor with higher income

2.3 Interest relationships and market limitations in heritage economic development

2.3.1 Interest relationships in heritage economic development

2.3.1.1 Subjects and interests in heritage economic development

In the market, the main actors participating in heritage economy development areheritage tourism destinations, organizations participating in OCOP production, local

governments, local communities and other organizations (banks, businesses ) Each of

these entities performs functions, tasks or plays a certain role in the economy in generaland in heritage economy development in particular; at the same time, associated witheach different subject are different economic benefits Detail:

- Heritage tourism destinations: supported by the government through tourism

development policies and projects; orient the type of business to suit the characteristics

of the local heritage and culture; attract a large number of domestic and international

visitors to visit, create a source of revenue and budget to serve the preservation andrestoration of heritage; promote the image of heritage to everyone; preserve and promote

the cultural capital of the heritage so that it does not disappear; increase labor resources

in heritage tourism destinations

- OCOP production and business organizations: have autonomy in production

and business, operate according to the law, have financial autonomy, create their own

capital sources, proactively improve efficiency in using and managing capital and takeresponsibility for the results of production and business activities (losses and profits);

autonomy in choosing production and business fields and industries suitable to availabletraditional cultural resources; autonomously choose the form of ownership and model ofproduction and business organization The economic benefits that these organizations

gain are income: salaries, wages, profits from production and business activities,

economy development The economic benefits that local governments gain are sources

of revenue for the local budget and contribution to local economic growth The cultural

benefits that local governments gain are the preservation and development of traditional

culture in the community, spreading a unique and pleasing image nationwide andinternationally Furthermore, in heritage economy development, local authorities notonly play the role of managers of input and output provision activities but also act as asupport factor for organizations, businesses, and business households Businessesoperate more effectively in the market as well as harmonize beneficial relationships in

the market At that time, the benefits that local governments and the State gain are not

only budget revenue but also long-term socio-economic development of the locality (lesscost for resolving conflicts)

- Local community: as the subject of cultural creation and enjoyment, the localcommunity enjoys the fruits of heritage economy development such as: jobs andimproved living standards, developed infrastructure and transportation network Local