Summary of Doctoral dissertation of public Management: State management for agricultural economy in the northern coastal region in the direction of industrialization and modernization

The dissertation aims to develop a theoretical framework for state management for agricultural economy, which is the basis for analyzing and evaluating the status of state management for the agricultural economy of a territory. Based on that, the final research purpose of the dissertation is to improve the state management of agricultural economy in the Northern Coastal Region in the direction of industrialization and modernization.

MINISTRY OF EDUCATION AND

PHAM NGOC QUYNH

STATE MANAGEMENT FOR AGRICULTURAL ECONOMY IN THE NORTHERN COASTAL

REGION IN THE DIRECTION OF INDUSTRIALIZATION AND

Works completed in NATIONAL ACADEMY OF PUBLIC ADMINISTRATION

Scientific Supervisors: 1 Prof Dr Dinh Van Tien

2 Assoc Prof Dr Trang Thi Tuyet

For more information of the dissertation, please learn about in

- The Library of National Academy of Public Administration

- The National Library of Vietnam

PREFACE

1 Reasons for selecting the topic

The Northern Coastal Region is an important economic region of Vietnam, located along the Gulf of Tonkin The Northern Coastal Region includes 5 Northern coastal provinces: Quang Ninh, Hai Phong, Thai Binh and Ninh Binh According to Decision No 865/QD-TTg issued in 2008 by the Prime Minister of Vietnam, The Nothern Coastal Region is oriented to become a nationally and internationally important economic region The Northern Coastal Region has a great potential for agricultural economic development, with the location of the center of the Red River Delta, the Northern granary, with the potential for aquatic and tropical climates that create favorable conditions for cultivation and breeding

Not out of the general situation of the whole country, the agricultural economy

in the North Coastal Region currently has many limitations Not many technological advances, especially technical advances in production and processing of agricultural products have been applied to produce, so productivity and quality of cultivation, breeding and aquaculture are low The agricultural product processing industry is still underdeveloped Obviously, agricultural industrialization - modernization is the only way to increase the added value of agricultural products, while other incentives for development such as land and labor are limited Important solutions for agricultural development in the region is to promote scientific and technological research in agriculture; To actively transfer technology, training and vocational training to farmers in order to develop human resources and apply science and technology effectively

These limitations and shortcomings have many causes, both objective and subjective, but the most basic cause is the state management of the authority at all levels, especially the provincial authority for agricultural economy remains many limitations and inadequacies both in theoretical awareness as well as direction of implementation For the above analysis reasons, it is necessary to study to further improve the state management of agricultural economy combined with the process of industrialization and modernization of agricultural sector Therefore, the author has

selected the direction of researching "State management for agricultural economy

in the Northern Coastal Region in the direction of industrialization and modernization" as the subject of the Doctorial dissertation, with the desire to make

actual contribution to the innovation process of state management for agricultural

economy in the Northern Coastal Region, including Hai Phong city - the author's fatherland

2 Purposes and tasks of the study

2.1 Purposes of study

The dissertation aims to develop a theoretical framework for state management for agricultural economy, which is the basis for analyzing and evaluating the status of state management for the agricultural economy of a territory Based on that, the final research purpose of the dissertation is to improve the state management of agricultural economy in the Northern Coastal Region in the direction of industrialization and modernization

2.2 Tasks of the study

- Achieving the research purpose presented above, the dissertation sets out the following main research tasks:

- Supplementing and improving the theoretical basis for state management of agricultural economy in the period of industrialization and modernization

- Researching experiences of state management for agricultural economy in some regions of the whole country and in other countries in the world and draw lessons that may be applied to the North Coastal Region

- Analyzing and evaluating the current status of state management for agricultural economy in the provinces of the Northern Coastal Region, point out remaining constraints in state management and identify objective and subjective causes of such restrictions

- Proposing orientations and measures to improve state management of agricultural economy with practical value in order to promote the agricultural economy development in the direction of industrialization and modernization in the Northern Coastal provinces

3 Objects and scope of the study

3.1 Objects of the study:

The research object of the dissertation is the state management of agricultural economy in the scope of a territory, associated with the process of agricultural industrialization and modernization

3.2 Scope of the study:

3.2.1 Scope of content:

Firstly, the dissertation studies and assess the status of the state management

according to the contents of the management process including: organizing the apparatus; building the legal system; formulating and organizing the implementation

of planning and plans; issuing policies; inspecting and supervising

Secondly, the agricultural economy studied in this dissertation includes:

cultivation, breeding and aquaculture The dissertation does not study forestry sector This is because forestry is not the strength of the localities in the Northern Coastal Region, except for Quang Ninh province; However, Quang Ninh's forestry is not significant in comparison to other regions in the country

sub-Thirdly, the subjects of state management mentioned in the dissertation include

the central government and the local government, in which focusing on the provincial government

Fourthly, in reality, there is no regional management apparatus in the Northern

Coastal Region Therefore, during the implementation of studying the dissertation, the author collects data and documents of each locality, then synthesizes and gives general assessments for the whole region

3.2.2 Scope of space:

The research space of the dissertation is the Northern Coastal Region, covering the whole administrative boundaries of 5 provinces: Hai Phong, Quang Ninh, Thai Binh, Nam Dinh and Ninh Binh

3.2.3 Scope of time:

The dissertation collects data and analyzes the research materials from 2008 to

2015 The author selects the timeline starting in 2008 because this is the time to mark the formation of the Northern Coastal Economic Region after the Government issued Decision 865/QD-TTg dated 10/7/2008 approving the planning for construction of the Northern Coastal Region up to 2025 with a vision to 2050

4 Methodology and research method

+ Primary and secondary data analysis and statistics method;

+ Comparison and synthesis method

+ Expert method:

+ Other technical methods: Processing of collected data by some statistical

tools, Word, Excel program in Microsoft Office software

5 Expected new contributions of the dissertation

- The dissertation has developed and improved the relatively complete theoretical framework on state management for agricultural economy in the direction

of industrialization and modernization, including: definition, necessity, function and content of state management for agricultural economy

- The dissertation identifies two groups of objective and subjective factors that influence and decide the effectiveness of state management for agricultural economy

in general and in the provinces and cities in the Northern Coastal Region in particular

- The dissertation has analyzed and assessed the status of state management for agricultural economy in the Northern Coastal Region according to the contents of the state management Since then, the dissertation has pointed out the limitations and weaknesses in state management for agricultural economy; identified the causes leading to remaining constraints in state management which have hindered the development of agricultural economy in the direction of industrialization and modernization in the North Coast Region

- The dissertation has proposed a system of feasible solutions for state management to promote the development of agricultural economy in the localities in the Northern Coastal Region in the direction of industrialization and modernization

7 Structure of the dissertation

Apart from the preface, conclusion, reference materials and appendices, the dissertation has four chapters as follows:

Chapter 1: Overview of researches related to the dissertation topic

Chapter 2: Scientific foundation of state management for agricultural economy in

the direction of industrialization and modernization

Chapter 3: Current status of state management for agricultural economy in the

Northern Coastal Region

Chapter 4: Orientations and solutions to improve state management for

agricultural economy in the Northern Coastal Region in the direction of industrialization and modernization

CHAPTER 1 OVERVIEW OF RESEARCH SITUATION RELATED TO THE

DISSERTATION TOPIC

1.1 SUMMARY OF SOME PUBLISHED RESEARCHES RELATED TO

STATE MANAGEMENT FOR AGRICULTURAL ECONOMY IN THE

DIRECTION OF INDUSTRIALIZATION AND MODERNIZATION

Agricultural economy and state management for agricultural economy is not a new topic; This content has been selected by scholars, researchers and graduate students as a relatively common research topic This is because agriculture has played

a key role in economic development in our country, even in the period of industrialization and modernization of the country and international economic integration During the study of this dissertation, the author has collected nearly 100 documents related to the dissertation, including both domestic and foreign documents

in various forms: magazine articles, scientific research topics, projects, state management documents, master theses, doctoral theses, textbooks, reference books and monographs These materials focus on the following three main research areas:

Firstly, research on agricultural economy and agricultural economic

development includes 3 sub-sectors of cultivation, breeding and aquaculture ., agricultural economic restructuring

Secondly, research on agricultural industrialization and modernization in the

direction of sustainability

Thirdly, research on state management of agricultural economy is carried out

according to the contents of management such as developmental policies, planning and developmental plans, inspection and supervision for official in charge of agricultural management

1.2 ISSUES NOT YET STUDIED IN THE PUBLISHED WORKS AND MAJOR RESEARCH DIRECTION OF THE DISSERTATION

As a result, domestic and foreign documents related to state management of state management for agricultural economy in the direction of industrialization and modernization, which the author has collected, shows that most of the researches have mentioned for many contents about agricultural economy development, or the state management for agricultural economy in both theoretical and practical aspects;

In which, the author has proposed orientations for agricultural economy development

in the direction of industrialization and modernization in some provinces, cities and some economic regions of Vietnam It can be said that this is a system of a valuable scientific works with actual reference meaning in the research process of the author However, this rich documentation system remains defective and different from the author's dissertation:

(1) No comprehensive theoretical framework on state management for agricultural economy has been developed in the direction of industrialization and modernization Most studies refer to only one or more aspects of state management such as policies, development strategies or monitoring systems

(2) There have been some works on state management for agricultural economy, but they have been studied for a long time as Vietnam has not actively participated in the process of international economic integration as well as there are

no many uncertain factors affecting the current agricultural production For example, the issue of climate change, the impact of the economic downturn, and change in food demand of consumer

(3) Most of the research studies cover the scope of research in the whole country or the Red River Delta, the Mekong Delta, the Northern Midland and

Mountainous Region or within a province such as Da Nang, Hanoi, Thua Thien Hue, Can Tho

(4) Recently, many new guidelines and policies of the Party and the State which have been promulgated (such as the project on restructuring the agricultural sector, agricultural and rural development strategy up to 2020 ) have a great importance to agricultural development and state management for agricultural economy, that make the further research become necessity

(5) At present, there is not any research project or work on state management for agricultural economy focusing on the Northern Coastal Region in the direction of industrialization and modernization Although there are some agricultural research papers in the Red River Delta, there are two regions interfered by the four provinces

of Hai Phong, Thai Binh, Nam Dinh and Ninh Binh Particularly, Quang Ninh province is located in the North Coast Region, but not in the Red River Delta

Based on those determinations, the author has bravely selected the topic of

"State management for agricultural economy in the Northern Coastal Region in the direction of industrialization and modernization"

CHAPTER 2 SCIENTIFIC FOUNDATION OF STATE MANAGEMENT FOR

AGRICUTURAL ECONOMY IN THE DIRECTION OF

INDUSTRIALIZATION AND MODERNIZATION

DIRECTION OF INDUSTRIALIZATION AND MODERNIZATION

2.1.1 Definition of agricultural economy

To go to the definition of agricultural economy, the dissertation studies and

learns about the definition of agriculture and the definition of economy From this dissertation, the dissertation presents the definition of agricultural economy as follows:

Agricultural economy includes economic activities in agricultural production such as output, price, value-added, productivity, income, distribution, exchange in agricultural sector such as breeding, cultivation, aquaculture… The research scope

of this dissertation focuses on the economic aspects of agriculture, not mentions the production methods or techniques and methods of cultivation and breeding, such as seed, fertilizer, cultivation and breeding methods…

2.1.2 The role of agricultural economy for economic growth and development

In the national economy, the role of the agricultural sector is very important

Firstly, creating a consumption market for agricultural production

Secondly, creating jobs for rural workers, reducing the unemployment rate in this

region

Thirdly, creating consumption markets for the service industry

Fourthly, through the export of agricultural products, bringing a large source of

foreign currency income for the country

2.1.3 Factors affect agricultural economy

2.1.3.1 Natural conditions affecting agricultural production: (1) Land; (2) Climate;

(3) Water resource

2.1.3.2 Eco-social conditions: (1) Labor resource; (2) Infrastructure, investment

capital for agriculture; (3) Policies

2.1.3.3 Group of factors related to technical science

2.1.4 Definition of agricultural industrialization and modernization

Agricultural industrialization and modernization is the process of building material and technical bases and restructuring the agricultural economy in the direction of large and modern commodity production, linking agriculture with industry and services, permitting highly effective promotion of all resources and advantages of a tropical agriculture, expanding domestic and international exchanges

in order to increase social labor productivity in agriculture, building newly prosperous, equal, democratic and civilized rural regions

2.1.5 Characteristics of agricultural economy development in the direction of industrialization and modernization

The basic characteristics of an agriculture developed in the direction of industrialization and modernization include:

- Developing diversified commodity agriculture, building specialized production regions on a large scale and step by step modernizing to meet the requirements of the domestic and export market

- Developing production and life services in rural regions such as agricultural hydraulic services, veterinary services, plant protection services, materials supply and consumption services

- Promoting the modernization of agriculture, including irrigation, mechanization, automation, computerization, chemistry in the agricultural, forestry and fishery sector

- Appreciating the application of biochemical science and technology advances

in agriculture

- Conducting simultaneously and step by step implementing industrialization and modernization, it is necessary to gradually shift the structure of agriculture

- Prioritizing investment in agricultural production and rural and mountainous economic development

- Strengthening the level of agricultural science and technology and the qualification of rural citizens, especially the agricultural labor force

2.2 THEORY OF STATE MANAGEMENT FOR AGRICULTURAL ECONOMY IN THE DIRECTION OF INDUSTRIALIZATION AND MODERNIZATION

2.2.1 Definition of state management for agricultural economy in the direction

of industrialization and modernization

2.2.1.1 Definition of management and state management

2.2.1.2 Definition of state management for agricultural economy

State management for agricultural economy is a macro management of the State for agriculture through the planning tools, laws and policies to create favorable conditions and premises as well as favorable environment for agricultural production and trading towards the common goal of the whole agriculture; regulating the benefits among regions, sectors, between agriculture and the whole economy; Taking control of all activities in agriculture and rural economy

2.2.1.3 Definition of state management for agricultural economy in the direction

of industrialization and modernization

So far, there is no uniform definition of "state management of agricultural economy in the direction of industrialization and modernization" In the resolutions

of the Party, the Decision of the Government only agrees on the terminology of agricultural industrialization and modernization The definition of state management

in agriculture in the direction of industrialization and modernization was firstly mentioned by Dr Nguyen Huu De (2008) in his doctoral dissertation According to the author, state management of agricultural economy in the direction of industrialization and modernization is the impact of the state to promote agricultural development in the direction of industrialization and modernization

Derived from the theories on the role of the State for the economy, derived from the reality of characteristics and role of agricultural economy for economic growth and development, the author of the dissertation sets out the definition of state management for agricultural economy in the direction of industrialization and modernization is as follows:

State management for industrial economy in the direction of industrialization and modernization is an impact which is organized and adjusted continuously by the

law of the State based on the foundation of certain political institutions for processes and agricultural activities to achieve the agricultural industrialization and modernization

According to this concept, the subjects of state management for agricultural economy in the direction of industrialization and modernization are the agencies of the State apparatus, including the legislative agencies, executive agencies and judicial agencies The objects of state management for agricultural economy in the direction

of industrialization and modernization are economic activities taking place in the agricultural sector such as production, distribution, exchange and consumption of agricultural products The goal of state management for agricultural economy in the direction of industrialization and modernization is to shift the structure of agricultural economy towards large commodity production, linking with processing industry and consumption market, simultaneously applying science and technology into agricultural production to increase value

2.2.2 The objective necessity of state management for agricultural economy in the direction of industrialization - modernization

2.2.2.1 Derived from the role of agriculture in the economy

2.2.2.2 Derived from the dependence of agricultural economy on natural conditions 2.2.2.3 Derived from the process of shifting economic structure in the direction of more modernity

2.2.2.4 Derived from the issue of national food security and food hygiene safety 2.2.2.5 Derived from the problem of environmental pollution in agricultural development in Vietnam nowadays

2.2.3 Function of state management for agricultural economy in the direction of industrialization and modernization

Firstly, orientating agricultural development strategies in line with each stage

of economic development of the country

Secondly, adjusting relationships in agricultural sector, and between agricultural sector and the rest of the economy

Thirdly, supporting and assisting household economy, farm economy, service cooperatives and other types of production organization in agriculture and rural development

2.2.4 Content of state management for agricultural economy in the direction of industrialization and modernization

2.2.4.1 Organizing the state management apparatus for agricultural economy

The state management apparatus for agricultural economy is a system of power agencies at all levels from central to local level, is responsible for direct or indirect

management of agriculture at the macro level Through the state management apparatus for agricultural economy, the State plays the role of controlling the agriculture to be developed effectively, stably with social equality Each country has

a different way of referring to the Ministry of Agriculture, but the Ministry in charge

of Agriculture in all countries is responsible for the development and implementation

of agricultural policies, and is responsible for implementing the state management functions for the forestry and aquaculture and rural development of the country

At the central level: the management agency agrees that agriculture sector is the Ministry of Agriculture and Rural Development At the local level, agency in charge of managing agricultural sector of Departments of Agriculture and Rural Development, located at provinces and cities Departments of Agriculture and Rural Development operate as local branches of the Ministry of Agriculture and Rural Development, in combination with respective provincial People’s Committees

2.2.4.2 Building and implementing the legal system of rural development in the direction of industrialization and modernization

Legislation exists as a management tool for agriculture and rural regions and plays an important role in the following aspects:

Firstly, establishing the legal basis, protecting and supporting the formation

and development of market mechanisms in agricultural economy Legislation acts as

a factor to create, support and protect the formation and development of economic relations in the direction of industrialization and modernization

Secondly, establishing order and healthy business environment for agricultural

activities

Thirdly, protecting the legitimate interests of economic objects involved in

economic relations in rural agriculture

2.2.4.3 Building and organizing the implementation of planning, plan, program and project of agricultural economy development in the direction of industrialization and modernization

In order to manage economic activities, the managers of all levels must use the planning tools With regard to nature, planning is the manager’s decisions about the goals, measures, and material guarantees needed to implement goals in a given period Planning is a orienting tool for the economic activities of units, localities, or the whole rural agriculture

2.2.4.4 Issuing and implementing policies on regulating and promoting the agricultural economy development in the direction of industrialization and modernization

In order to achieve the development goals outlined in the agricultural development strategies, plans and projects, the State uses a system of economic policies as a tool to influence the mobilization mechanism of agriculture Subject to the different approaches, it can classify economic policies in agriculture according to different criteria Some of the following agricultural economy policies may be mentioned:

+ Land policy

+ Investment policy

+ Credit policy

+ Market price policy

+ Agricultural product export policy

+ Agricultural extension policy

+ Policy on renovation of agricultural and rural structure

2.2.4.5 Inspecting and supervising economic activities in agriculture

Basically, the specialized inspection and supervision in the agricultural sector includes the following contents: field of cultivation; field of plant protection and quarantine; sector of breeding; fishery sector; veterinary field; field of agricultural, forestry and fishery product quality management; field of agricultural, forestry and aquatic product processing

2.2.5 Factors affect state management for agricultural economy in the direction

of industrialization and modernization

2.2.5.1 Group of objective factors

(a) Situation of socio-economic development; (b) Political context in the country; (c) The process of international economic integration; (d) Increasing competition in the agricultural market

2.2.5.2 Group of subjective factors

(a) Viewpoints of the Party and the State on agricultural development; (b) Mode and method of state management for agricultural economy; (c) Capability and quality of officials and civil servants; (d) Costs for management work

2.3 INTERNAL AND INTERNATIONAL EXPERIENCES IN STATE MANAGEMENT FOR AGRCULTURAL ECONOMY IN THE DIRECTION

OF INDUSTRIALIZATION AND MODERNIZATION AND APPLICABLE LESSONS TO THE NORTHERN COASTAL REGION

2.3.1 Experiences in state management for agricultural economy in the direction

of industrialization and modernization