Economics Doctoral summary: Job solutions for the agricultural laborers in the urbanization progress in Thanh Hoa province

To study the employment situation and employment solutions for agricultural laborers in the urbanization process in Thanh Hoa Province for the period of 2013-2017, proposing solutions to 2025 with a vision to 2030 socio-economic development of the locality.

HANOI UNIVERSITY OF BUSINESS AND TECHNOLOGY

DO MINH TUAN

JOB SOLUTIONS FOR THE AGRICULTURAL

LABORERS IN THE URBANIZATION

PROGRESS IN THANH HOA PROVINCE

Major: Business Administration

Code: 62.34.01.02

ECONOMICS DOCTORAL SUMMARY

HANOI - 2018

INTRODUCTION

1 Introduction on the thesis

The thesis is written with a total of 157 pages, of which the page numbers of each chapter, each part is divided as follows: (introduction: 5 pages, chapter 1: 16 pages, chapter 2: 38 pages, chapter 3: 62 pages, chapter 4: 33 pages, conclusion: 2 pages) The thesis was conducted through the reference process of 112 documents (including 95 documents in Vietnamese and 17 documents in foreign languages) The thesis is illustrated through 41 tables, 03 charts, 01 figure and 01 diagram

The thesis has studied the rationale for employment, employment solutions, employment solution content for agricultural laborers in the urbanization process in the Supply-Demand approach as well as the analysis of factors aecting employment Based on the experience of employment solutions for agricultural laborers in the process of urbanization in some countries in the world and some localities in Vietnam, the thesis has drawn lessons for Thanh Hoa Province

The thesis surveyed the employment situation and employment solutions for agricultural laborers in the urbanization process in Tho Xuan, Tinh Gia Districts, Thanh Hoa city, showing that there is still a large part of agricultural laborers losing their job due

to urbanization This phenomenon is due to the following reasons: 1) group of factors in the supply of agricultural laborers; 2) group of factors under the employment demand for agricultural laborers; 3) Group of policy factors From the analysis of the situation of employment solutions at the research sites, through the SWOT analysis, the thesis proposes solutions to solve the problem of agricultural laborers in the urbanization process

in Thanh Hoa Province in the time to come

2 The necessity of the thesis

After more than 30 years of renovation and industrialization, the country's urbanization, agriculture and rural areas have made impressive strides in socio-economic development However, unemployment, lack of employment in this area is less improved and more and more serious Therefore, the employment solution for agricultural laborers in the process of industrialization and urbanization is an urgent issue of the Party and the State, of the current branches and levels

Thanh Hoa is a large province in North Central Vietnam with a population of over 3.5 million (2016), of which 82.93% of the population are living rural areas, 17.07% of the population are living in urban areas Along with abundant labor force and also one of the localities with high unemployment rate in agriculture, in 2016, underemployment of Thanh Hoa is 4.95% compared to 2.28% in all over country The population of the province has increased rapidly, with an average of 2.34% in the period 2012 - 2016 The number of people added to the social work force is relatively large annually, mainly in agriculture areas, countryside

Along with the economic development, urbanization in Thanh Hoa is also very

strong, urbanization has changed the face of rural areas, a large part of agricultural land will move to industrial and urban land, inevitably increase the number of underemployed laborers in the agricultural sector, rural areas and changes in many aspects of life, economy and society

Therefore, the employment solutions for agricultural laborers in the process of urbanization in Thanh Hoa Province should be studied seriously, pointing out the shortcomings, constraints, causes and barriers to help Thanh Hoa Province clearly identify shortcomings in economic development and economic restructuring of the province Based on that, propose orientations and solutions to solve the problem of employment for agricultural laborers in Thanh Hoa Province in the coming time

Starting from the above urgent issues, the Ph.D candidate selects the title:

“Employment solutions for the agricultural laborers in the urbanization progres in Thanh Hoa Province”, as the title of Economics Doctoral Thesis, major of Business

Administration

3 Research objectives and mission

3.1 Objectives: To study the employment situation and employment solutions for

agricultural laborers in the urbanization process in Thanh Hoa Province for the period of 2013-2017, proposing solutions to 2025 with a vision to 2030 socio-economic development of the locality

3.2 Mission

- To clarify the rationale and practical experience in employment solutions for agricultural laborers in the process of urbanization; Establish theoretical frameworks for employment solutions for agricultural laborers in the process of urbanization

- To analyze the situation of employment solutions for agricultural laborers in the urbanization process in Thanh Hoa Province; Indicates achievements, limitations and causes

- To propose directions and some key solutions to employment solutions and increase income for agricultural laborers in the process of urbanization in Thanh Hoa Province until 2025 with a vision to 2030

4 Research scope:

Spatial scope: Do research in Thanh Hoa Province, referring to experiences of some

countries in the region and in the country Primary data were collected in 3 Districts (Tho Xuan District, Tinh Gia District, Thanh Hoa city)

Timing scope: Analyze and evaluate the current situation of employment and employment

solutions in the period of 2013 - 2017; Propose solution until 2025 and vision to 2030

Content scope:

- The thesis researches solutions to create jobs for agricultural laborers in the process

of urbanization In particular, focus on employment solutions for agricultural laborers living

in rural areas, redundant agricultural laborers working in the field of agriculture and surplus agricultural laborers operating in other areas of the urbanization process

- The thesis focuses on two main contents (expanding the employment demand for

agricultural laborers and improving the quality of agricultural labor supply) in Thanh Hoa Province

- The thesis focuses on employment solutions for agricultural labor mainly from 2 sides (state management agencies and enterprises) for agricultural laborers living in rural areas

- The thesis examines the factors affecting the employment for agricultural labor in the urbanization process such as the factor group of agricultural labor supply (population, working age, education, professional level of laborers, soft skills, education and training ); Factors related to employment demand for agricultural laborers (business environment, economic development in urbanization, etc.); Group of factors belongs to state policy

5 Research questions

- How does the situation of urbanization in Thanh Hoa take place?

- How is the economic structure of Thanh Hoa Province moving in the process of urbanization?

- How does the urbanization process affect the employment of Thanh Hoa's agricultural laborers?

- What is the problem of employment for agricultural laborers of the province in the past time? What are the advantages and disadvantages?

- What solutions to solve the employment of agricultural laborers in the province in the process of urbanization in the coming time?

6 Structure of the thesis

Apart from the introduction, conclusion, list of references, the thesis note is divided into 4 chapters:

Chapter 1 Overview and research methodology;

Chapter 2 Scientific basis on employment solutions for agricultural labor in the

process of urbanization;

Chapter 3 The current situation of agricultural labor solutions in the urbanization

process in Thanh Hoa Province;

Chapter 4 Employment solutions for agricultural laborers in the urbanization

process in Thanh Hoa Province

CHAPTER 1 OVERVIEW AND RESEARCH METHODOLOGY 1.1 Overview of research works relating to the thesis title

1.1.1 The researches in foreign countries

- Studies on employment and policy: There are many studies on employment and

policy, such as: In 1936, J.M Keynes, “Theory of Employment, Interest Rates and

Monetary”; In 1976, Todaro, M P “Internal Migration in Developing Countries: A Review of Theory, Evidence, Methodology and Research Priorities”; International Labor

Office, Geneva 26; In 2003, Martin M & Ronald W.M, Unemployment duration and

employability in remote rural labor markets; In 2009, Harry Toshima, Essay in development of Economics in honor of Harry Toshima

- Labor market studies: In 1998, Ben Fine, A constructive reassessment; In 2006, Jenkins, Globalization, FDI and employment in Viet Nam; In 2008, Lu, Ming and

Shiquing Jiang, Reform of the labor market, income inequality and economic growth in

China; In 2008, Alex Warren-Rodríguez, “The impact of the global crisis on employment levels in Poland: an elasticity approach”, UNDP Vietnam Technical Note; 2014,

International Labor Organization, “Global Report: World Employment 2014:

Development with Employment”

1.1.2 Domestic research works

- Studies on employment and policy: The authors' researches include: Bui Ngoc Lan

(2007); Tran Thi Minh Ngoc (2010): Employment of farmers in the process of

industrialization and modernization of the Red River Delta up to 2020; Le Du Phong

(2007), Income, life and employment of people whose land is recovered for the

construction of industrial zones, urban areas, socio-economic infrastructure, public works national interests; Vietnam Institute of Economics (2010), Employment, Investment, Trade and Enterprise Development in Vietnam; Le Quoc Hoi (2012), Employment and life

of laborers in industrial zones, export processing zones and economic zones in Vietnam;

Nguyen Van Thang (2013) “Employment policies for rural youth in areas subject to land

recovery”; Nguyen Hoai Nam (2015), Employment policy for rural laborers in the context

of migration - Research in some provinces in North Central Vietnam; Pham Ngoc Canh (2015), Employment for rural youth in Nghe An; Tran Thi Minh Giang (2017), employment solutions for farmers whose land is revoked in Vinh city, Nghe An province

- Labor market studies: Hoang Kim Ngoc (2003), Small and Medium Enterprise Development contributes to employment solutions and labor restructuring in rural areas;

Le Xuan Ba (2008), Employment development associated with the shift of rural-urban

labor structure; The Ministry of Agriculture and Rural Development (2001), Some issues

on industrialization and modernization in agricultural and rural economy in the

2001-2020 period; Hanoi Agricultural University (2012), Agriculture, rural areas, farmers in the process of industrialization and urbanization in Vietnam; Dang Kim Son (2008), Agriculture, Farmers, Rural Vietnam - Today and tomorrow, International experience in agriculture, rural areas, farmers in the process of industrialization

1.1.3 The key issues of the thesis but haven not been properly mentioned in the research

The research works at home and abroad analyzed different aspects of employment, employment in general There has been no deep research on the changing livelihoods and livelihoods resources for agricultural laborers in the urbanization process The above-mentioned studies also do not deeply analyze the problem of solving employment associated with the efficient use of resources, especially socio-economic development in the context of international economic integration

In addition, researches in different time and space have not studied employment solutions for agricultural laborers in the urbanization process in Thanh Hoa Province On the basis of utilizing and exploiting the potential of resources to create jobs in the agriculture of the province Based on the SWOT analysis of the Supply-Demand approach, the thesis proposes solutions to promote and facilitate market development in

the direction of linking agricultural value chains as well as developing local high technology application agriculture The development of non-agricultural sector and rural economy; the ability to connect supply-demand for labor in the area with the neighborhoods and the effectiveness of employment solution policies…

1.2 Research methodology

1.2.1 Approach, analytical framework

1.2.1.1 Participatory approach

1.2.1.2 Approaches by economics types, organizations

1.2.1.3 Approach to open market

Determining the research points

+ Tinh Gia District + Tho Xuan District + Thanh Hoa City

Content of employment solutions for agricultural laborers in

the urganization process

+ Expand the employment demand for agricultural laborers + Improve the quality of agricultural laborer supply

Assessment on employment solution situation for agricultural laborers in the urganization process

in Thanh Hoa Province

+ Supply of agricultural laborers + Employment demand for agricultural laborers + The labor market balance

+ The achievements, limitations and causes

Conclusion

Employment solutions for agricultural laborers in the urganization process in Thanh Hoa Province

+ Orientation + Solutions

Analysis of strengths, weaknesses, opportunities and challenges of employment in urbanization in Thanh Hoa province by SWOT matrix

Factors influencin

g the employme

nt solutions

in agricultur

al work during urbanizati

on

+ Group of factors in labor supply + The factor group belongs

to Job demand + Group of drug factors

on state policy

1.2.2 Selecting research locations: In the research, we selected 3 locations: Tinh

Gia District, Tho Xuan District and Thanh Hoa city These are the localities representing the subregions of Thanh Hoa Province

1.2.3 Method of data collection

1.2.3.1 Secondary data

1.2.3.2 Primary data

1.2.4 Method of data systhesis and analysis

1.2.5 Indicator system used in the research

Chapter 2 SCIENTIFIC BASIS ON EMPLOYMENT SOLUTION FOR AGRICULTURAL

LABORERS IN THE URGANIZATION PROCESS

2.1 Some relating concepts

2.1.1 Laborers

2.1.2 Agricultural laborers

2.1.3 Employment and employment solutions

2.1.4 Urbanization

2.1.5 Employment solutions for agricultural laborers in urganization process

2.2 Content of Employment solutions for agricultural laborers in urbanization process

2.2.1 Expanding employment for agricultural laborers

The employment demand for laborers is the labor demand of the economy at a given time, usually determined by the employment indicator Employment demand for the labor of an economy depends on the following factors: the economic development of the country; Industry structure and sectoral distribution; The technological level of machinery and equipment used; Unemployment and inflation; State policies that affect Employment demand; Gender, age, ethnicity

The employment demand for agricultural laborers is the number of jobs that economic and social organizations have the need to use and are able to pay wages or salaries to be entitled to use them for a certain period of time

In the process of urbanization, unemployed laborers are mainly agricultural laborers The simplest solution is to allocate the right to use agricultural land in other places so that they continue to work in their existing jobs

2.2.2 Enhancing the quality of agricultural labor supply

Agricultural labor supply is a part of the working-age population who is capable

of working, is working in the agricultural sector or has demand of supplying labor for the agricultural sector to get a job

Agricultural labor supply depends on the following factors: size and growth of population; The size and growth of human resources; Length of working time of the employee; Living standards of the population; Educational level, customs and habits

The urbanization process causes agricultural laborers to lose their jobs, which means that there is a surplus of labor in agriculture In order to get a job, they have to change jobs, find new jobs Since agricultural laborers are jobless due to the urbanization

of different ages, vocational training suitable for all ages must be respected

2.3 Factors affecting employment solution for agricultural laborers during urbanization

2.3.1 Factor group of agricultural laborer supply

- Factors affecting the quantity of agricultural labor supply

- Factors affecting the quality of agricultural labor supply

2.3.2 Group of factors belong to Employment demand for agricultural laborers

- Business environment

- Economic development in the process of urbanization

- The development of cultivators in the agricultural sector

2.3.3 Group of elements of the state policy

2.4 Experiences of employment solution for agricultural laborers in the process of urbanization in some countries, localities and lessons learned for Thanh Hoa Province

2.4.1 Experiences of some countries in the world

2.4.1.1 Experience of Thailand

2.4.1.2 Experience of China

2.4.1.3 Experience of Korea

2.4.2 Experiences of some localities in the country

2.4.2.1 Experiences of Bac Ninh Province

2.4.2.2 Experiences of Quang Ninh Province

2.4.3 Lessons learned for Thanh Hoa Province

Chapter 3 THE EMPLOYMENT SOLUTION SITUATION FOR AGRICULTURAL LABORERS IN THE URBANIZATION PROCESS IN

THANH HOA CITY 3.1 Natural and socio-economic characteristics of employment solution for agricultural laborers in the process of urbanization in Thanh Hoa Province

3.1.1 Natural and socio-economic conditions of Thanh Hoa Province

Table 3.1 Population and population distribution in Thanh Hoa Province for period

Source: Thanh Hoa Statistical Office

Employment situation; Technical facilities; Results of economic development

Table 3.2 Economic growth of Thanh Hoa Province 2014 - 2017

Unit: Billion dong

3.1.1.3 Impacts of natural, socio-economic conditions on employment solution for agricultural laborers during urbanization in Thanh Hoa Province

- Advantages

- Difficulties

3.1.2 Situation of agricultural development of Thanh Hoa Province over time

Agricultural production in the province has developed relatively stably, contributing

an important part in satisfying the demand of food and foodstuff for the people, of which the livestock sector has developed quite high (9.5%, the period of 2013- 2017), contributing significantly to the growth and economic restructuring of agriculture Agricultural production is moving positively towards the production of goods

Table 3.3 Some targets for agricultural, forestry and fishery development

Source: Thanh Hoa Statistical Office

3.1.3 Overview of the urbanization process in Thanh Hoa Province over time

3.1.3.1 Situation of industrial development

3.1.3.2 The number of urban and urban population

In recent years, in addition to the socio-economic development process of the country in general and Thanh Hoa Province in particular, the urban space of Thanh Hoa Province has been constantly expanded, the rate of urbanization and the proportion of urban population growth has increased significantly

Table 3.4 Rate of urbanization in Thanh Hoa Province 2013-2017

No Year Number of

urbans

Ratio of urbanization (%)

Urban population (people)

Ratio urban population (%)

Source: Department of Construction, Thanh Hoa Province 2018

3.1.3.3 Urban planning work

By 2016, all urban centers in the province have been prepared and approved on urban master plans, some urbans have been adjusted many times 25 urban areas have been adjusted

in terms of general planning construction in recent times and are under construction; six urbans have been approved on the general planning, the validity term expires and are backward, under research for adjustment, including Quang Xuong, Trieu Son, Vinh Loc, Nhu Thanh Quan Son, Vinh Loc, Nhu Thanh, Quan Hoa, Quan Son, Vinh Loc

3.1.3.4 On type recognition, expansion of administrative boundaries and

establishment of new urban centers

The province has 7/35 ranked urban areas, including: Thanh Hoa City is ranked as the urban type I urban with a population of 405,000 inhabitants and an area of 14,777 ha Sam Son City is ranked as urban type II with a population of 62,550 people, natural area of 1,788.76ha Bim Son town is ranked urban type IV, with four urban centers up to type V urban standards

3.1.3.5 The shortcomings in the urbanization progress in Thanh Hoa Province

Firstly, the rate of urbanization is low, the growth rate is slow;

Secondly, urban areas, especially the districts, currently have a rather monotonous function; Thirdly, the urban technical infrastructure is still weak and incomprehensible; Fourthly, the structure of land use is not balanced, land planning for industrial

production, cottage industry and handicraft increased slowly;

Fifthly, employment for agricultural laborers is not guaranteed;

Sixthly, Social evils arise, social security is affected

3.2 Analysis of employment solution situation for agricultural laborers during urbanization in Thanh Hoa Province

3.2.1 Overview of the employment of agricultural laborers in Thanh Hoa Province

3.2.1.1 Number and structure of employment of agricultural laborers

In Thanh Hoa Province, agricultural laborers mainly live in rural areas and occupy large numbers By 2013, the population in rural areas was 1,896,000, while the urban population was only 220,000 By 2017, the number of people living in rural areas has changed slightly by 1.880.000 people, while the urban population has increased to 318,000 people

Table 3.5 Number of laborers in Thanh Hoa Province 2013-2017

Calculatoin unit: thousand people

Source: Thanh Hoa Statistical Office

Regarding the labor structure of the province over the years: The ratio of male and female laborers will change in the period 2013 - 2017, in 2013 the rate of male and female laborers is 50.30% and 49.70% respectively By 2017, the rate of male laborers will fall to

49.59%, while female laborers will increase to 50.41% For the structure of rural and urban labor; rural labor still occupies the main proportion in the labor structure of the province with 89.61% (in 2013) This rate has been changing slowly, after 5 years, the rate of rural

labor was reduced by only 4% to 85.55% while the rate of urban labor is only 14.45%

Table 3.6 Labor structure in Thanh Hoa Province in stage 2013-2017

of the locality, the labor force in the field of cultivation has the fastest decline In 2015, about 556 thousand people living mainly by cultivation ,then in 2017, this number decreases to 525 thousand people

Table 3.7 Employment of agricultural laborers in Thanh Hoa Province 2015 - 2017

Calculation unit: thousand people

Source: Thanh Hoa Statistical Yearbook; Annual Statistical Indicator System - Statistical Office

For the surveyed sites in Thanh Hoa city, Tinh Gia District and Tho Xuan District, the average number of laborers per household is not much different Of which, the labor force of households surveyed at locations have differences In Thanh Hoa, agricultural laborers (including purely agricultural laborers and cum laborers) account for only 25% while those in the service sector account for the largest share of 43.69% and industry accounting for 31.07% In addition, in the survey in Tinh Gia District, where there are many industrial parks, the rate of agricultural labor is still high, the total number of agricultural laborers and agricultural labor accounted for 32% while , industrial labor accounted for 48.21%, service laborers number is very low, accounting for only 19.64%

Table 3.8 Survey data on work types of the research locations

Indicators Thanh Hoa City Tinh Gia

District

Tho Xuan District

1 Number of laborers

Labor service industry 43,69 19,64 26,17

Agricultural laborers and others 20,39 17,86 28,97

Source: The data invested by the Ph.D candidate, year 2017

Considering the labor structure shifting process, an important indicator that needs to

be evaluated is the employment elasticity of Thanh Hoa Province Table 3.9 shows the employment elasticity Economic growth and job elasticity are closely related The higher the employment elasticity of GDP is, the more labor-intensive it is, and vice versa If economic growth creates fewer new jobs it is an alarming sign It shows the irrationality in using resources for growth However, employment growth is not only driven by economic growth but also through labor-market measures and policies

Table 3.9 Elasticity of employment in Thanh Hoa Province for stage 2013 - 2017

Indicators General

Agriculture, forestry, fisheries

Industry and construction