Topic: The transitions in three economic sectors

Topic: The transitions in three economic sectors 1. The general situation in three economic sectors. 2. The situation of each economic sector. 2.1. Agriculture. 2.2. Industry. 2.3. Services II. The reason of transition in three economic sectors. 1. The government policies. 2. The trend of the world. 3. Science and technology develop quickly 4. Other reasons

Topic: The transitions in three economic sectors

A. Introduction.

In 1950, South Korea is poor country, with about 95 percent of population lived

in countryside and worked in agriculture Then South Korean Government decided to industrialize their economy They concentrated on emerging industries that were textiles and heavy industries like steel and ship building, light industries like electronic equipment and components, electrical goods (such as cheap televisions) It also started producing cars (automobiles) and motorbikes

Now, South Korea is a industries country, with tenth economy in the world and fourth in Asian (after China, Japan and India), it has very dynamic economy with large and famous enterprises, for example: Samsung in computers and telecommunication equipment (Smartphone, TV…), LG in household goods and electronic components (washing machine, refrigerator…), Hyndai in Shipbuilding and automobile manufacturing, Possco in Steel

So, to build and grow the economy stable and steady, with fast pace of sustainable growth, it requires determining the appropriate economic structure and resolving the relationship among economic sectors, economic components and economic territory Therefore, transition in three economic sectors is inevitable in the implementation process of industrialization and modernization

in our country today Our discussion will talk about: The transitions in three

economic sectors in Viet Nam: situation and reasons.

Economic structure is the overall economic sectors, economic department with location, density and their corresponding relationships It includes: economic sector structure, economic components structure, economic territory structure Economic sector structure expressed the relationship between the sectors of the national economy: agriculture, industry, service The economic sector transition matches the increasing development of productive forces and social labor division

B. Body

I. Situation

1. The general situation in three economic sectors.

• The economic transformation structure always has a strong attachment

to labour transition.

When beginning to industrialize, our economic was underdeveloped and at

a low level Economic structure was still backward, agriculture contributed high density to GDP, industry and services which bring economy high value still contributed low density to GDP Industrialization and modernization process happened quickly, this led to strong change in economic structure

The transformation of the labour structure also happened as a strong revolution Labour which made up more than 70% in agriculture decreased;

in 2010, this rate was 49,5% in Viet Nam Labour density in industry and service increased instead

• Economic structure has shifted towards industrialization and modernization.

Economic transition toward industrialization, modernization likes a way for Viet Nam to escape quickly from backward situation, slow development and become a civilized and modern country

The structure of economic sectors in GDP in our country is a shift towards:

- Proportion of industry and construction is increasing

- Proportion of planting – forest – fishery and mining is declining in the gross national product

- Proportion of region services increased but not yet stable

With continuous high growth rate of GDP and relatively stable, economic structure has changed significantly in a positive direction Proportion of agriculture in GDP has declined rapidly from 38.1% in 2009 to 34.6% in

2010 The ratio of industry in GDP has increased rapidly from 32.08% in

2009 to 36.73% in 2010 and 41% in 2011 Share of service sector also increased over the year, but also more volatile

2. The situation of each economic sector.

2.1. Agriculture

Trend: Reduce the proportion of planting and increase the proportion of the fishery.

Vietnam is an agricultural country Growth in agricultural production value occurs at a rate of 5% to 6%/year, decreasing to 3.5% in 2009, then increased

to 4.7% in 2010, GDP growth the lower branches and swings, from 3% to

4% Value of agricultural production, forestry and fisheries in 2010 was estimated at 232.65 trillion The export value of Vietnam’s agricultural products have risen sharply in the last 4 years, especially in product with competitive advantages, but mainly the product of rice, coffee, rubber, cashew, pepper and vegetable… while livestock products exported almost did not

Structure of cultivation and breeding sectors has shifted towards progress, increasing the proportion of product yield and high economic efficiency, exporting worth product Agriculture has an important change, has shifted from rice monoculture, low productivity to not only enough in the country but also exported large quantities of rice, ranked second in the world; exports coffee, rubber, cashew nuts, pepper, seafood with the volume charted in the world

2.2. Industry

Trend: Increase the proportion of processing industry and reduce the proportion of mining industry.

Industry structure has quite a shift The proportion of processing industry is

up from 78.7% in 2009 to 81.23% in 2010 The proportion of the mining industry increases from 15.7% to 12.8%), increasing the share of industrial production and distribution of electricity, gas and water (from 5.6% to 5.9%)

2.3 Services

The services sector’s growth in 2011 reached 6.8%, in 2012 reaching 5.9%,

in 2013 is at 6.56%, higher than the rate of other regions

In the service sector, there has witnessed a dramatic development both in quality and quantity Share of service sector in GDP growth is relatively strong in recent years The worrying thing is the proportion of a number of important services in the structure of the service sector and in GDP as the

financial sector – banking, science – technology, transport, telecommunications, service business is still volatile And, though it appears that some new services in the service sector, but in general the share of service sector in the structure of our country’s economy is still low compared

to other countries in the region

II. The reason of transition in three economic sectors.

1. The government policies.

Policies play the major role to create the transition in three economic sectors; remove barriers, facilitate market development; orientate and support the process of economic restructuring; control, limit the downside of the market mechanism and ensure sustainable economic development.

For agriculture: Government has policy to create a powerful change in

agricultural production and rural economy

- Government invests in the development of economic infrastructure, rural society and building a new countryside, to quickly apply science and technology to agricultural production

- Aquaculture development towards large-scale commodity production, coupled with the protection of ecological environment Improve competitiveness and ensure sustainable growth in production and export of aquatic products

- Focus on the development of farm economy, the type of economic cooperation, speed up the reorganization and management innovation of agricultural and forestry farms; develop the types of enterprises

For industry: Policy of government in industry and constructions is

developing construction industry towards higher quality, competitiveness and modernization Viet Nam should concentrate resources on the development

of industries with advantages competitive, generate exports, such as agro-forestry-fishery apparel footwear, industrial technology information…

For service: Government has policy to prioritize the development of

service sector which has great potential and high competitiveness Traditional services such as transport, trade, banking and telecommunications must be expanded and improved quality legal services, auditing, insurance, science, technology, education and training, health, culture, sport information is being developed

Specially, government has policy to create favorable condition for all

economic sector development Government implements innovation management mechanisms and enhance the effectiveness of state management for the restructuring of economic activity

2. The trend of the world.

Trade may impact to changes in the economic structure It stimulates the development of service and industry: transportation, telecommunication, banking and service and meet the need for improving the quality of life: health, education, sports, entertainment and tourism Thus, it alters the structure of production and services

In the coming years, the international economy continues to move up into the branches of knowledge economy, high technology

Globalization and international are an opportunity for the developing countries in international economic integration, expand exchanges with other countries in the world, on that basis can acquire the skills and experiences to develop domestic industry, in addition can promote the advantages of its economic structure, and it is a good opportunity to showcase the country as well as a prerequisite for the development services industry

When joining the WTO, with the constraints of the global economy and the requirements about the market opening has helped Vietnam expand the international relations, opening up opportunities to attract investment abroad

3. Science and technology develop quickly

In the world, science and technology are more and more developmental

There are many new inventions and scientific advances are invented

The development of science and technology is widely applied to agricultural production People use machine to replace labor in production, they apply methods of biotechnology to increase quantity Tractors, harvesters, sprinklers, pumps, dryers and other motorized vehicles are used

to expand production and save time for workers in the field Besides, the development of science and technology increases the effect of production and business in the industry and services This leads to the ability of expanding the scale of production, labor demand increases, and they attract labors from the agricultural sector. 

4. Other reasons.

- Geographical location, natural resources.

Viet Nam has many forests, scenic well suited to the development of tourism and related services, many mineral create good conditions for the development of the mining industry We have also a long coastline, many large ports, it makes convenient to develop transportation services

- Level of development of market economy.

Social needs of market are basis to production and meet a demand not only the quantity, thereby leading to the changes in position, the proportion of occupations in the economy

C. Conclusion.

Transition economic structure trend over the years is positive, the direction

of industrialization and modernization and in accordance with actual conditions of our country