Summary of Economic Dotorate’s thesis: Restructuring the agricultural economics toward modernization in Hung Yen province

Within the framewwork of research, it’s concentated assess the issues related to economics restructuring of animal husbandry farm in Hung Yen towards modernization as well as other relevant contents of restructuring.

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

HOANG MINH DUC

RESTRUCTURING THE AGRICULTURAL ECONOMICS TOWARD MODERNIZATION IN

HUNG YEN PROVINCE

Major: Development Economics Code: 9.31.01.05

SUMMARY OF ECONOMIC

DOTORATE’S THESIS

HANOI - 2018

THE THESIS IS COMPLETED AT

GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Advisors: 1 Prof; Dr.Sc Do Hoai Nam

2 Assoc Prof; Dr Nguyen Dinh Long

Counter-Argument No.1: Prof; Dr.Sc Nguyen Quang Thai

Counter-Argument No.2: Assoc Prof; Dr Nguyen Duy Dung

Counter-Argument No.3: Assoc Prof; Dr Phi Manh Hong

The dissertation will be defended before the thesis review council of the Academy at the Graduate Academy of Social Sciences

at hour minute, day month year.

The thesis can be found at:

- National Library of Vietnam

- Library of Graduate Academy of Social Sciences

INTRODUCTION

1 The urgency of research project

Hung Yen province belongs to Red River Delta, located in the key economic region of the North, with more than 85% rural households, 40% farmers, agricultural workers, etc Over the past 20 years of provincial re-ebstablishment, the agriculture sector has been developing, however, up to now, Hung Yen agriculture is just a low value added industry, with less proportion of applied high-tech products, undeveloped industry & rural services, besides, the participation of enterpries in production value chain is limitted, agricultural products are mainly consumed domestically The current agricultural economic structure of Hung Yen Province has not been strong enough to make a new breakthrough and to be competitive in the domestic and international market, etc Especially, in the broader international integration context, together with the impact of industrial revolution 4.0 , the agriculture of Vietnam in general and Hung Yen particularly are facing great opportunities as well as big challenges, which require to be restructured towards modernization with hi-tech application It

is a necessary and objective demand

Therefore, restructuring agriculture economics towards modernzation

is a great importance to Vietnamese agriculture in general and Hung Yen particularly to overcome the constraints, make a breakthrough in the development and answer key research questions, etc., Therefore, research

project “ Restructuring agriculture economics towards modernzation in Hung Yen Province” has the theoretical and practical meaning and is a

urgent matter in the new context

2 The Purpose and research task of the thesis

2.1 The purpose

Systemizing and clarifying in theory and practice and analyzing deeply the real status of restructuring agricultural economics of Hung Yen province toward modernization, propose the perspective, orientation, and key solution for restructuring agricultural economics of Hung Yen province towards modernization by 2025 and future vision by 2030

2.2 The research task

The thesis is focused on the following tasks:

(1) Systemizing and clarifying theoretical matters, acculmulating

domestical and international experiences of agricultural economics restructuring from tradition to modern; (2) Analysing, evaluating the current state of agricultural economics restructuring towards modernization in Hung Yen province, identifying the results, limitations, causes and issues needed to solve; (3) Proposing the perspectives, orientations and main solutions to accelebrate the agricultural economics restructuring process of Hung Yen province towards modernization by 2025 and a future vision by 2030

3 Research object and scope of the thesis

3.1 The Object: is the process of agricultural economics restructuring

towards modernization

3.2 The Scope:

Place: Research topic was conducted in Hung Yen province, focused on

some typical districts, communes and key points in Hung Yen province

Time: Study the real situation from 2010 to 2016

Content: Within the framewwork of research, it’s concentated assess

the issues related to economics restructuring of animal husbandry farm in Hung Yen towards modernization as well as other relevant contents of restructuring

4 Approaches and Methods of the thesis

4.1 Approaches: The thesis is used the main following approaches: (1)

Interdisciplinary, multidisciplinary approach; (2) Regional approach; (3)

Participatory approach; (4) System access; (5)Market access, etc.,

4.2 Methods: The thesis is used both qualitative and quantitative methods,

but the qualitative is the main one, in particular:

4.2.1 The method of data collection

4.2.1.1 Collection of published data (secondary data)

4.2.1.2 Collection of new data (primary data)

questionnaires for 03 subjetcs: producing households; local leaders in ,

communes, districts who direct the agricultural production, associated agriculture enterprises in the province

* Choosing survey sites, survey samples: To collect the reliable

information representative for the whole province, the researcher has conducted survey on 03 districts included Khoai Chau, Kim Dong, and Yen My

Survey subjects: 03 objects included local households, village,

commune and district officials, and typical local enterprises

4.2.2 Data processing method: The data is manually synthesized and then

systematized, processed and the figures are calculated mainly through

4.2.4 Quantitative vector method

This method is used to quantify the level of translation between two moments t0 and t1 by the magnitude of the "angle" combined by two structural vectors corresponding to those two moments, this formula is proposed by WB expert and widely used and quantified according to the following quantitative formula:

In which: - Si(t0) is the proportion of sector i at the moment t0 being

considered as the root term

-Si(t1) is the proportion of sector i at the moment t1 being considered as the resarch term

-α: is the angle made by Si(t0) và Si(t1) with condition 0≤α≤90 The speed of agricultural economic restructuring is determined by:

V(%)=(α/90)x100

5 New contributions of the thesis for science:

- To systematize and clarify several basic issues on theoretical agricultural economic restructuring towards modernization, building a theoretical framework for research

- To analyze the experience of agricultural economic restructuring

towards modernization of some countries on over the world and some provinces and cities in Viet Nam, thereby drawing lessons that can be applied to the specific conditions of Hung Yen province

- The thesis focuses on analyzing and assessing the current state of Hung Yen's agricultural economic restructuring towards modernization in

terms of resources, market, production organization and technology

-To propose the perspetive, orientation, solution system comprehensively and accessibly to accelerate the restructuring of Hung Yen's agricultural economy towards modernization and sustainability by

2025 and vision by 2030

6 The thesis’s theoretical and practical meanings

6.1 The theoretical meaning

The thesis solves out directly the theoretical issues of modernizating agricultural economic restructuring (concepts, contents, criteria, etc.,) as a systematical foundation for research in Hung Yen province

6.2 The practical meaning

The dissertation was conducted in a new development context of

Hung Yen province such as broader integration, industrial revolution 4.0, pollution, etc.,that is also the point when Hung Yen province has gradually shifted its agricultural economics towards industrial economics, urbanlization has been strong, the space for agricultural producing has been decreased, meanwhile the demand for argo-products especially organic agriculture is on a rise On the other hand, Hung Yen still has over 80% rural househoulds, in which approximately 40% of househoulds are poor and lives on agriculture In that context, restructuring agricultural economic towards modernization successfully has the important meaning putting a stepping-stone in economic development

7 The conclusion of the thesis Except the introduction, the conclusion,

appendix and index to reference work, the thesis is devided into 04 main

chapters:

Chapter 1: Overview of the research

Chapter 2: Theoretical bases and practical experiences in restructuring

agricultural economic towards modernization

Chapter 3: The true state of restructuring agricultural economic

towards modernization in Hung Yen province

Chapter 4: Orientation and solution for restructuring agricultural economic towards modernization in Hung Yen province

Chapter 1: THE RESEARCH OVERVIEW

Up to now, there are many researches related to agricultural economic restructuring foreign and domestic such as:

1.1 The researches of restructuring agriculture to market-oriented economy

The book “East Asia Miracle: Economic Growth and Public Policy”

– World Bank (WB) published by Washington D.C in 1993[163] and

“Rethinking East Asia Miracle” by Joseph E Stiglitz, Shahid Yusuf,

Oxford University Press, 2001 [143] are reader’s interest research works Their points of views show that shifting economic structure is mainly determined by market It’s suggested that shifting production from “what

we have” towards “what market need”

Having the same point of view, the researches of E Stiglitz, Shahid Yusuf , named “ Agricultural Policy Choices in OECD Countries” from

1961 to 2008 byJ.Brooks, published in 2010 The Study “New Traits in

maintain food security, production restructuring oriently meet the requirements of market, renew the production relationships in the

countryside Author Tran Tien Khai expressed in the article “Agricultural

restructuring: Market Views” in 2015 about the background of modern

agricultural development, Vietnam export market and its demand, etc.,

1.2 The relevant research paper of tranforming the business organization model and production management towards

modernization in agricultural economic restruring

According to this approach, the enterprises would produce products focusedly and in a large-scale And with production nuclear role, they are has enough linkage production capacities to promote restructuring agriculture effectively Stamm & Christian in Study of ILO “Develop the value chain: Approach methodology and Activities of 7 UN agencies, and

argo-Opportunities for Interdisciplinary Development” authors Drost, S., Jeroen van Wijk, Fenta Mandefro in research paper named “Key conditions for

succcessful value chain partnerships” in 2012 studied the partnership in

value chain in Ethiopia Another research paper “The restructuring

process and economic centrality in capitalist agriculture” by Terry

Marsden, Sarah Whatmore, Richard Munton Sudies on “Farm

restructuring in the ex-GDR: towards a new farm model?” by Olivia J

Wilson, Bernd Klages[154, p.277-p.291]; “Restructuring and

agriculture-rural economy linkages: A New Zealand study” by Olivia J Wilson The

article “Restructuring or Reconstructing Agriculture –Science basis” by Vu

Trong Khai Research of PhD Đặng Kim Sơn, in papper book “Vietnam

Farmers, Rural and Agriculture now and forever” All of the authors

conclude that small-scale production organisation and smal services are the main obstacles to modernize production

1.3 The research papers on restruturing agricultural economics by advanced technology application

Mike Baroni (2011) from U.S National Institute of Education with

research “ The Bridge on Agriculture and Information Technology:

Innovation and Urgency: Toward a New Green Revolution” suggested that,

synchronically and frequently applicating the hi-tech and advanced information technology would be a breakthrough in shifting agriculture structure to new level modern development Mieke Meurs(2008) trong bài

viết “Agricultural restructuring in Bulgaria”và Christopher Conte, Albert

R Karr (2001) in “American Agriculture: Its Changing” emphasized that

restructuring agricultural economic by using new technology would create

an highly effective agriculture

Having the same opinion wwith the above researches, research of

Richard Bolt implemented on 7/2004M:“ Accelerating Agriculture and

Rural Development for Inclusive Growth: Policy Implications for Developing Asia”, the Article “Towards hi-tech agriculture and new rural construction during restructuring Vietnam agriculture” by Prof.Dr Tran

Duc Vien và Dr Nguyen Viet Long

1.4 The researches on restructuring agriculture together with substainable developent and climate change adaption

This subject includes the report “Our common future” was prese

nted at The World Commission on Environment and

Development-WCED(Brundtland Report 1987), FAO(1992) in “World Food Dry",etc., Vietnam 2035 Report also state the message of Vietnam is that “Economic

“Subsistence Agriculture” của Malcolm Gillis Study “Urban and urban agriculture” - FAO published in 2001 Research on Substainable Argitourism” by Bui Quang Tuan (2015) Study of Vu Van in paper book

peri-“Sustainable agriculture development in Vietnam”etc.,

1.5 Approaching work of restructuring agriculture towards industrialization and modernization

1.6 The issues are needed to be researched more in the thesis

The first one is that restructuring agriculture towards modernization

is stilla new issue in Vietnam, esspecially in Hung Yen in the context of integration, industrial revolution 4.0, climte change,etc.,

The second, at the pre“sent there is no science-based study on the

restructuring of Hung Yen's agricultural economic in the new context by

2025 and future vision by 2030 With this thesis, the writer expects to contribute to clarify the theoretical and practical matters of restructuring agriculture towards modernization in Hung Yen province in term of market, production organization, technology, environment, potentials,etc., they are also the issues needed to answer smoothly under development in practice of Hung Yen

- Approach: The thesis is approached on economics, society,

institution, envirionment, production organizatio, technology, and

implemented with economic development specility

CHAPTER 2 THEORETICAL BASIS AND PRACTICAL EXPERIENCES ON RESTRUCTURING AGRICULTURAL ECONOMICS TOWARDS

MODERNIZATION

2.1 Theoretical basis of restructuring the agricultural economics toward the modernization

2.1.1 Economic Theory and restructuring agricultural economics

The thesis explain and clarify some relevant concepts and basic theory demontrating the process of restructuring agricultural economics

Concepts: Clarifying the definitions of economic structure,

agriculture, economic restructuring and agticultural economic restructuring

according to that:“Agricultural economic restructuring is a process that

changes the structure and internal relationships of the agricultural economics under purpose- oriented, it means that shifting a traditional and out-of-date agriculture to modern developing ones in term of adaptability, dynamy, effectiveness, comrehensive economics and society with cognition and objectivity”

Basic theories: The thesis analyzes and clarifies the views and

implications of some theoreties on agricultural economic restructuring,

reflecting the moving from tradition to modernity such as Walter Rostow's

Stages of Economic Growth; The Fei–Ranis model of economic growth by

Transformation and the Changing Role of Agriculture in Economic Development: Empirics and Implications by Peter Timmer The mentioned

theories draw the regular conclusions on agricultural economic restructuring towards modernization that would be the basic analysis framework for the above theories

2.1.2 Theories on agricultural economic restructuring towards modernization

2.1.2.1 Modern Agriculture and Agricultural economics structure

From scientific analysises the thesis gives out the following concepts:

*Traditional Agriculture

*Modern Agriculture

*Modern Agricultural Economics: is an overall of relationships in

agriculture production (sectors, sub-sectors,etc.,),which have organic linkage with each other in term of quantity and quality, creating the balance, the hamorny, more adapting to market’s demand and current development environment (economics, politics, society, nature envorinment, technology environment,etc.,), at the same time adapting to requirement of substainable development in domestic and international

integration

2.1.2.2 Restructuring agricultural economic towards modernization

Restructuring agricultural economic towards modernization is a

process (increasing or decreasing) on quality, scale, value, rate of

agriculture sectors in deirection of adapting to market’s demands, integration, and climate change in order to create a suitable structure (sector,region,component, technology, and product) hợp lý, develope comparative and competitive advandges during agriculture development towards modernity

2.1.2.3.Popular contents and rule-based standards of restructuring agricultural economic towards modernization

The polular contents and issues are that:

- Must depend on market’s principle and economics

- Step by step moving from out-of-date monoculture to polyculture, diversifying cultivation and animal husbandry s, developing large-scales

commodity production , technology on order to extend comparative advandges and competitive advandges

- Step by step development, shifting non-agriculture, reducing agricultural labour population

- Towards land consolidation, farmland centralization to move scale agriculture to hi-tech large-scale production

- Restructuring regularly, professionally, and modernizedly in association with ecommerce

- Towards sustainable development associated with environment

protection and climate change adaption

- Having public private partnership (ppp) and associate entities

2.1.2.4 The impact factors on restructuring agricultural economic towards modernization

- Natural Geography Conditions;

- Market and Enterprises

2.1.2.5 Some criteria of assessment

* Quantitive criteria: contributing to increase economic indicators (value

added, profit, etc.,), social indicators (raising people's intellectual level, reducing poor households, social evils, etc.,), environment indicators (green production, decreasing polltution, etc.,), human intdicators (improving health, spiritual life, etc.,)

* Qualitative criteria Using 2 criterial groups include result and

effectiveness suitable with current Hung Yen context such as:

Criteria 3: value and value rate of argo-products in advanced

production process (VietGap, ISO, organic vegetables, etc.,)

Criteria 6: the rate of households, farms, enterprises applied

advanced production process (VietGap, ISOGAP, GlobalGAP)

Criteria 7: the rate of households, farms, collectives are linked with

enterprises

Criteria 10: the rate of enterprises applied hi-tech

Criteria 12: Argo-products value rate (cultivation, animal

husbandry) produced under the cooperatation and linkage with enterprises and collectives

- Several criteria refecting the effectiveness of restructuring agricultural economic towards modernization as follows: Agriculture

GDP rate in RGDP, GDP growth rate, production value, value added (VA),

Mixture incomes (MI), profit, etc.,

2.2 Practical experiences on restructuring agricultural economic towards modernization

Learning from restructuring of other countries, nearby typical provinces, fellower draws 7 valuable reference lessons for Hung Yen in term of market, resources, technology, production organisation linkage,etc.,

for restructuring agricultural economic towards modernization

CHAPTER 3 REALITY OF RESTRUCTURING AGRICULTURAL ECONOMICS TOWARDS MODERNIZATION

3.1 The impacts of Natural conditions, Socio-economic on restructuring agricultural economic towards modernization

Afte analyzing natural conditions, socio-economic, other resources, it’s showed that: Hung Yen has convenient location, flat and fertilized soil,much potentials on market, resources, etc.,which bring much advantages on accessing hi-tech, educating labour force, attracting invest enterprises

However, due to scattered land, impacts of industrializaton and modernization, urbanization, limited labour force and lacking invest enterprises, quality of argo-products and competitive capacity are very effected during restructuring process

3.2 Reality of restructuring agricultural economic towards modernization

3.2.1 Agriculture restructuring

Within agricutural sector, production value between cultivation and

animal husbandry on period 2010-2016 also shifted clearly, specifically cultivation has been reduced from 50,01% in 2010 to 44,65% in 2016, animal husbandry has been increased from 41,19% in 2010 to 44,23% in

2016 (comparative price)

* Moving speed of agriculture and fisheries

Through Qualitative Vector Analysis, the writer quantify the moving speed of agriculture structure in period from 2010 to 2016 as follows: Table 3.1 shows unstable moving speed year by year, but on the average , the period of 2010-2016 reached 6,5% is rather high (higher than Red River Delta)

Unstable speed of restructuring agricultural economics caused by limitations in organization, resources, technology, and market However, reviewing comprehensively the quality of restrure is improved, towards modernization, showed in terms of the followings: Firstly, accomulating and centralizing farmland for large-scale production construction,in particular, 92 compact production areas, 104 vast farms

Secondly, having innovated production organization and promoted

linkages in agriculture Creating several linkage models between enterprises and farmers as well as collectives in producing green argo-products by VietGAP, Organic production Shifting low value cultivation and animal husbandry s to high value cultivation and animal husbandry s such as high quality rice, organic vegetables

Thirdly, advanced production process VietGAP, organic agriculture

are intially applied The rate of biosecurity breeding facilities increasing from 10% in 2010 to 30% in 2015

Table 3.1 Speed of restructuring agricultural economics at Hưng Yên

in 2010-2016 Time Cosα

Speed (α/90)